Reasoned Advice from Skilled Bankruptcy Attorneys
When the real estate market takes a turn for the worse, many people can find themselves in a situation where they owe more on their home than it would be worth if they tried to sell it. Rather than continue to pay on an asset that might take several years to recover its value, some homeowners choose the option of what is known as a “strategic default”. Our Tampa bankruptcy lawyers recommend thinking twice before pursuing this action.
Strategic default refers to a situation where the homeowner chooses to quit making payments on the mortgage even though he or she is financially able to do so. These are voluntary decisions, and home mortgage defaults are not looked upon kindly by lenders. There are a number of issues you should consider before deciding on a strategic default, and it is important that you understand the advantages and disadvantages.
Understanding Florida Law Regarding Strategic Mortgage Defaults
At the Debt Relief Legal Group, our attorneys can give you sound advice and help you understand the pros and cons associated with these types of decisions. We will take the time to review your unique circumstances, answer any questions you might have and explain any alternatives that may be beneficial for you.
Once you have stopped making payments on your mortgage, the bank will eventually foreclose on the property. The foreclosure can remain on your credit report for up to seven years. If your lender is not able to recover the full amount owed on your property through the foreclosure sale, it can pursue legal action against you to collect the difference. Lenders are often able to build very strong cases in instances where the property owner had the ability to make the mortgage payments and chose not to make them.