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52 CONSUMERS WOULD CHANGE LIFESTYLE TO AVOID DEFAULT It doesn't take a financial catastrophe in the housing market to put consumers in danger. Whether epic meltdown or loss of work, hard- ship is hardship, and people often have to make tough decisions about how much they can afford and how much they can save on housing. e prospect of default is scary for most. Actually defaulting is horrifying. Jed Kolko, Trulia's chief economist, released the firm's findings on how people would likely cope with having to spend less on their housing. More than anything, people downsize. Accord- ing to the results of a survey Trulia conducted in March and April, 38 percent of respondents—by far the largest single percentage of any op- tion—said they would move to a smaller house or apartment if they were forced to cut back on housing costs. Of all the options, which included taking on roommates or moving in with others—re- financing was not one of Trulia's options—re- spondents showed a heavy preference (about 60 percent) for staying as autonomous as possible. Homeowners in particular are significantly less willing to get a roommate than renters. Accord- ing to the survey, 25 percent of renters would opt to take on a roommate, compared to 16 percent of homeowners. Renters also were more likely to take drastic measures, such as live in their cars or move back in with their parents, though these extremes were the outliers among the survey results. Still, 19 percent of respondents said they would take on a roommate rather than downsize, the same percentage of people who would opt to move to a less expensive area in order to keep the same general living space. Notably, middle-aged people are the most reluctant to go anywhere. Millennials (aged 18-34), Kolko said, are more willing than older age groups to move into another person's home or rent out part of their own home. "Young adults are, of course, more likely to have the option of moving in with their parents than older adults do, but they're also far more likely than older adults to move in with a non-relative or rent to a roommate," he said. People over the age of 55 are also more likely than the 35-to-54 cohort to move, whether to a smaller house, a more affordable area, or into a rela- tive's or friend's house, the study found. e middle- agers are also twice as likely to stop paying the rent or mortgage in order to avoid moving as other age groups would be, though few people in any age group said they would take that step, said Kolko. Trulia also found that status also has much to do with the decision-making. "Your strategy for cutting housing costs depends not only on who you are, but also on where you live," Kolko said. "Respondents living in more expensive neighbor- hoods would be more likely to move to a cheaper neighborhood or city if a major financial hardship struck. After all, if you're already in an expensive neighborhood, there are other neighborhoods that are cheaper by comparison." default servicing in print and online @ dsnews.com 08.2014 default servicing in print and online default servicing in print and online default servicing in print and online default servicing in print and online .201 .201 .201 .201 .201 .201 .201 .201 .201 .2014 default servicing in print and online default servicing in print and online default servicing in print and online default servicing in print and online default servicing in print and online default servicing in print and online default servicing in print and online default servicing in print and online @ dsnews.com dsnews.com dsnews.com dsnews.com dsnews.com dsnews.com dsnews.com 08 08 08 08 08 08.201 .201 Housing's Golden Investment or Fairy Tale? While data shows that the housing industry is making a signifi cant rebound, some housing market investors are fi nding that in the realm of purchasing of non-performing notes is a mere fantasy. 68 Q&A SESSIONS GOOD FOR BUSINESS Knowing which questions to ask is a critical piece to investor success in the changing marketplace. 72 PREYING FOR PAYOFF Troubled homeowners are easy prey for scammers, but steps can be taken by homeowners and servicers to make sure their investments are protected. 64 APPLES, ORANGES, AND LEMONS: EFFECTIVELY MEASURING HAZARD- CLAIMS MANAGEMENT If the devil is truly in the details, one of those details for mortgage servicers is managing the mortgagee-fi led hazard insurance claims process. THE LEADER IN DEFAULT SERVICING NEWS Help shape the next issue of DS News. Drop us a line at Editor@DSNews.com.

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