Georgia remains one of the top states in the nation for foreclosures, but new data from Atlanta-based Equifax suggest distressed homeowners in the state are fighting longer to keep their houses, AJC writer Scott Trubey reports.
The data also suggest that so-called strategic defaults — when borrowers simply walk away — are likely less common nationally and in Georgia than previously thought, Trubey writes.
The study compared whether borrowers defaulted first on their home loans or things such as credit cards. It also measured the length of time between a default on a credit card and a first foreclosure notice.
The longer the time, known as default distance, the more likely the borrower was diverting resources to stay in their home, Trubey explains.
As of September 2010, borrowers in Georgia who entered foreclosure first defaulted on a credit card on average about 11.5 months earlier. That’s up from just less than 10.5 months in early 2008, though down from just over 12 months in late 2005, according to Equifax.
The issue of strategic default “is not as bad as everybody is talking about,” Afshin Goodarzi, managing director of Equifax Capital Markets, told Trubey.
Also in the AJC:
In other media:
- Henry Unger, The Biz Beat
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