Strategic Default
Paying A Big Mortgage On A House That Just Isn't Worth It?
If you are in over your head with a home that has lost most of its value, then you are not alone. You, like many other investors and homeowners, bought when the market was at its peak, and then were trapped when the market crashed. You didn't expect your home to lose value; you thought that real estate was a safe investment, that there was no way you could ever see your major purchase become a major problem.
Whether you're an investor, a first time homebuyer, or any experience level in between, you are not alone in your predicament. Like many, you expected that the market would never burst. Leading economists didn't see this coming – how could you? But you're still left now to pick up the pieces. You're struggling to pay a mortgage on a home that is a fraction of its former value. You can still make the payments, but why should you? You'd just be overpaying for a home that's now worth much less.
A Strategic Default Can Help
This is the situation where a strategic default makes sense. A strategic default involves deliberately failing to pay a mortgage despite being able to do so. Obviously, a strategic default must be very carefully considered in order to be effective. Unless you are confident that a strategic default is the best move for you, you should seek other options.
Steps To Take Before A Strategic Default
The first thing to do before choosing a strategic default is to thoroughly examine your situation. Determine whether you have the legal status for a successful strategic default. You need a law firm that can go through the terms of your mortgage and determine whether there are any elements that make strategic default an undesirable choice, or whether you can choose strategic default with a minimum of negative consequences.
Kaufman, Englett, & Lynd, PLLC has attorneys with experience analyzing strategic default candidacy. When you choose to retain us as your representatives, you can be certain that every angle of your case will be assessed by professionals who have seen strategic default before. We will help guide you from your first meeting through the end of the strategic default, and we'll represent you as needed along the way.
Understanding What It Means For You
One of the most important things to consider when choosing a strategic default is the impact that it may have on your credit score. You must consider your credit score before deciding on a strategic default. Although it can have a serious impact upon your future credit, strategic default may still be a good option. The key is to understand your options before you take a strategic default.
In addition, you will need to take a close look at your financial standing before deciding to take a strategic default. In order for a strategic default to be wise, your mortgage should be a significant strain on your funds and/or your home should have fallen sharply in value. Strategic default is only logical if you have no reasonable hope of your home regaining its price, as is true of many homes in the wake of the housing bubble and the financial crisis. If your home has lost a substantial portion of its value and you are hopelessly underwater, then a strategic default can be your best option. You won't be overpaying for a devalued asset, and you'll be free to use your mortgage payment money for other expenses.
The Advantage Of Retaining Kaufman, Englett, & Lynd
When you work with us, you will be working with a team who believes in bringing you all the information and all the skills we can. We consider it our duty to help you analyze your situation, and we will provide you with every detail to ensure you make the most informed decision. We have a network of professionals that goes beyond our legal team, and can help assist you with other aspects of your strategic default. For instance, we can also help you protect other assets that might become threatened as the strategic default progresses. We are also able to assist you with certain aspects of property restoration that might impact your ability to use a strategic default. Finally, we can also assist you with active credit repair, helping your credit score rise as quickly as possible after a strategic default.
Our attorneys will be there guiding you through every step of your strategic default. Contact us today at 888.238.2686 for a free strategic default consultation and learn whether this might be the best choice for you and your family.