Strategic default, also known as voluntary foreclosure, is when the borrower decides to stop paying a mortgage even though they can still afford the payment. For many people who are upside down on their mortgage, the decision to strategically default is one that is difficult but, often times, the first step to financial freedom.
In this time of uncertainty in the market and economy, we are here to help educate and walk with you through the voluntary foreclosure process. We are experienced professionals who have helped over 5,000 people go through this process. You are not alone. Whether you are going through it because you have no other options, or just because, we won?t judge your reason, we just want to help you find solutions. Use the law to your advantage.
The Wall Street Journal?s Real Time Economics reported that: Researchers have found that homeowners start to default once their negative equity passes 10% of the home?s value. After that, they ?walk away massively? after decreases of 15%. About 17% of households would choose voluntary foreclosure as a solution ? even if they could pay the mortgage ? when the equity shortfall hits 50% of the house?s value, they found.
Are you having trouble deciding if it makes financial sense to strategically default?