California Debt Relief Lawyer
Information About Strategic Default
In the aftermath of the mortgage meltdown, many homeowners are left with the difficult decision of what to do next. The harsh reality hits home when he or she realizes they owe far more on their mortgage loan than their property is worth. They are unable to sell their property without having to dig deep into their pockets to fill the deficiency balance between what their home will sell for on the open market, and the amount they owe on the mortgage note. Unfortunately, there aren’t any conventional ways to refinance that debt and take advantage of the historically low interest rates.
A majority of mortgage servicers are unwilling to review a borrower for any of the programs designed to help people in this situation until after they have gone delinquent on their loan payments. If you have found yourself in this difficult position and are trying to examine your options, as well as the positives and negatives associated with them, then you have come to the right place.
What is strategic default?
One option is the strategic default. The strategic default is a default technique that has become increasingly popular as real estate values have continued to decline all across the nation. Although the housing crisis has spread throughout the United States, the problem has impacted major housing bubble states like California, Nevada and Florida more than other states. In fact, many of the people who we have seen walking away from their underwater mortgages have stellar credit scores.
The strategic default is a technique where a homeowner who can afford to pay their mortgage payment decides to stop making payments and allow their property to go into foreclosure. Often times the homeowner can afford to continue making their payments but they have decided that their property has dropped so far in value that it would take many years for them to recover their investment. Sometimes it just makes more financial sense to walk away from one’s home, then to continue losing money that they may never recoup. The other common scenario is where the homeowner keeps falling further behind on their payments and finally decides to stop making payments only after all their other options have run out.
California Debt Relief Attorney
During a $300 one hour consultation, California Debt Relief Attorney Roberts will closely review all of your available exit strategies, deficiency balance obligations, recourse versus non-recourse debt and tax liabilities resulting from cancellation of debt, and capital gains. He will also discuss any other options that may be available to mitigate the foreclosure on your credit report. We urge you to contact us today to schedule your strategic default strategy session with attorney Roberts. The sooner we get started, the sooner we can help you find the most viable solution for your matter.
