As an Asset Protection Attorney, I’ve worked with many, clients considering a strategic default on their mortgage. So many are looking for advice on how to best handle real estate that is now underwater.
Strategic Default vs. Moral Obligations
Besides understanding the consequences, one of things we speak about about is the moral obligation to make good on their commitments. This is understandable. I, like you, was raised with a strong sense of moral duty to meet the obligations I agreed to and pay what I said I would. But here’s the rub: our government does not live by the same standards. And there comes a point where you must put your personal financial situation first.
Quit Feeling Bad for the Banks
If you are considering a strategic default on a mortgage, but feel guilty, then please watch this video on loan modification. This video explains what’s really going on and why it’s so hard to get your bank to speak with you unless you are already in default. With a strategic default, or just plain default, you can quit feeling bad for the poor banks who are not going to get their loans repaid. If the banks were that concerned, then it would be likely that the sub-prime crisis would never have occurred in the first place.
httpv://www.youtube.com/watch?v=ssl5yb7FewA
Protect Your Other Asset with Asset Protection
If you are considering a strategic default foreclosure mortgage, I urge you to also consider asset protection to protect your other assets from exposure. Don’t let creditors get to your other healthy assets. Also speak with a foreclosure attorney in your area. After you have your ducks in a row, then move fast. Delaying an inevitable decision is rarely a good idea.
I have a rental property that I’m still paying on. It’s about 15k under water & not up to code. The house will cost thousands of dollars that I don’t have to get it up to code. I waived the inspection so I didn’t realize the severity until now. I have another house I reside in. I’ve recently filed bankruptcy on credit cards & DID not reaffirm the rental. Can I do a strategic default without them trying to take my assets??
Dear Sir, I have two properties in default and I have a third property that is paid off How do I protect the house from a law suit. My business is inc. Advise Thanks
I’m going to default. Will I have to pay my second mortgage? My game plan is to stop payment on my first and second. I then plan to remain in the house until foreclosed and evicted. I live in Hillsborough county, Florida. What is the current approximate length of time it takes to court process and evict someone? How many years before I can purchase another home? Will the court garnish my income at any time? I’m on the bubble. It’s either this, deed in lieu or bankruptcy. What are your thoughts?
What if the bank refuses a loan modification or rate reduction, after six years of paying our mortgage every month. Rental poetry s under water by 50% of original loan, best way to force the bank to wok with us?