“Strategic default”. Sounds fancy, like some sort of accounting trick used by the rich and famous.
In reality, a strategic default may be a viable solution to your current financial woes rather than pursuing foreclosure defense, loan modification or other potential options.
Your answers to the following questions will go a long way toward determining whether a strategic default is the right answer for you.
“Do you want to keep your house?”
It’s a serious question. Not everyone who falls into financial distress wants to keep their house. You may view your mortgage as a burden and wish to move on to being a renter or bide your time waiting to purchase a more affordable home down the road.
If you do not wish to keep your house, it could make more sense to cut your losses and walk away rather than dragging things out.
“How is your credit score?”
There are downsides to a strategic default just like there are downsides to any options in your situation. A major downside for many is the effect a default can have on your credit rating. Having poor credit will make it more difficult to obtain loans in the near future and make things more difficult for your family.
However, if you already have a poor credit score or are pursuing bankruptcy, this may not be of concern to you.
“Are you ready to learn more?”
Whether you decide to strategically default or not, it is in your best interest to consider your options with the help of a knowledgeable attorney. Contact us today.