Understanding Strategic Defaults

Understanding Strategic Defaults Florida Strategic Foreclosure Lawyers

Is your home worth far less than what you owe on it? Do you think this will stay that way for the foreseeable future? Strategic defaults are designed to help you in these situations. If you want to learn more about strategic default, please get in touch with us right away. Set up a free consultation with our Florida foreclosure defense lawyers right away.

What is Strategic Default?

Strategic defaults are known under several terms. They are often called strategic foreclosures, walkaways, and voluntary foreclosures. They happen when you make a decision to stop paying your mortgage due to the negative equity you have on your home. You are essentially handing over your home to your mortgage lender and walking away from your mortgage.

A strategic default is typically done after a housing bubble bursts and the values of homes plummet. When your home is worth less than what you owe for it, then you are considered “underwater” on your mortgage. Having negative equity on your home means you would lose money if you sold it. That is why people opt for a walk away.

Should I Walk Away from My Mortgage?

If you are going to go through with strategic default, you should know that there are consequences along with the benefits. It may be right for you and your family to go through with this. It is also important that you know that you may struggle to buy a house later.

This should be treated as a last resort. You are deemed technically able to pay your mortgage but choosing not to, so a lender may not want to take a chance on you in the future if you ever want to have a mortgage again. Strategic defaults can hit credit scores hard. Keep this in mind when you are considering a strategic default.

Sometimes it is the right choice. We would be more than happy to answer all of the questions that you have. We can also walk you through alternative options. Please do not hesitate to reach out.

Call Our Florida Foreclosure Defense Lawyers Today

If you want to talk to a lawyer about strategic defaults, please do not hesitate to reach out to our Florida foreclosure defense lawyers about your options. We would be more than happy to help you through this process. Get a free consultation set up with us today. Call us today to get started. d

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