Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

Strategic default

Posted on: 18th Nov, 2011 11:48 pm
Hi there… can anyone give me some advice on how to do a strategic default on mortgage?
Hi Caren,

I personally believe that it is better to avoid strategic defaults unless you have tried out all the available options. People consider it as a good option as they have become fed-up with their lenders for not helping them to modify the loan. Unless you are facing such a situation, is better to avoid this option. You can stop paying your debts if yre facing a financial hardship and then once again start negotiating with the lender for loan modification. Unless youre delinquent on your payments, none of the lenders will be ready to modify your loan. However, it should also be kept in mind that unless you can prove your financial hardship, the lender wot help you with any options.

Thanks
Posted on: 19th Nov, 2011 12:18 am
Jumping in next month. Value of home is 40% of what it was 5 years ago. Neighbor was a short seller and screwed us all. Now its my turn. Don;t feel bad about it. Already have another mortgage on another home...couldn't sell it and is now a rental property. I feel the relief already. The deal was, I pay, I get the keys, I don;t pay, the bank gets the keys. Why the moral issue? Business has been done this way for years.
Posted on: 22nd Nov, 2011 06:51 am
Hi srbhockeydad,

I can understand what you want to say. However, what I think is that strategic default may land you in trouble. If you go for strategic default and then cannot prove your financial hardship to the lender, then the lender won't consider your request and you have to pay off the defaulted amount along with the late fees and other charges immediately.

Thanks
Posted on: 22nd Nov, 2011 05:00 pm
Page loaded in 0.110 seconds.