Better Credit Rating = Higher Default
Mish has linked a report that found people with prime credit rates are more likely to default on a negative equity home then subprime borrowers.
One the facts that I found interesting was that subprime borrowers keep making sparodic payments whereas the prime defaulters just stop making payments altogether.
That really makes sense to me. People who have prime scores likely have better income and better life skills overall. They have to have better skills for weighing out the pros and cons. I suppose there was a time when moral responsibility would have affected my decision should I have found myself in such circumstances, however, the degree of unfairness and dropping other people's responsibility through government on tax payers and the total lack of fiscal responsibility and grand incompetence has changed my perspective that you need to look after yourself first. Being financially morally responsible in a highly financially corrupt environment is like trying to swim in deeper and deeper water when more and more rocks are being tied to your ankles.
I think people in some regions when they work out the numbers simply find that staying the course means being a debt slave and the best way to provide for their future is to start over.