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There are many alternatives to foreclosure, including bankruptcy, and the attorneys of Weintraub Zolkin Talerico & Selth LLP will discuss all of them with you. In some rare instances, if bankruptcy is not appropriate and saving your home is not a top priority, we may explore the positive and negative aspects of strategic mortgage default.
You might consider a strategic mortgage default if the following apply to your situation:
- Your home has lost significant value since you purchased it.
- The home will likely never regain the value it had when you purchased it.
- You are able to make the mortgage payments but have determined that keeping the house is financially unwise.
Many people who opt for a strategic mortgage default have income that puts them over the median income necessary to qualify for Chapter 7 bankruptcy. Others may have a bankruptcy in the recent past and are unable to file again. There are other options if you do not want to continue paying for a property that will likely be foreclosed upon or will never have equity.
Some options that should be explored alongside a strategic mortgage default include:
Contact our debt relief attorneys in Los Angeles, and we may be able to help you decide on the best course of action.
Pros & Cons of a Strategic Foreclosure
Like most debt relief strategies, weighing the pros and cons of any debt relief solution should be done carefully with a clear understanding of the impact such a strategy will have on your long-term financial health. If you are scrambling to make payments on a house that may not ever have equity, you may fall behind on other bills that you may be better off maintaining. If you choose a strategic mortgage default, however, you may be able to keep up with your other bills and stop putting good money after bad. You should know that a strategic mortgage default will have the same impact on your credit report as a foreclosure. Additionally, you may be held liable for taxes on the balance that remains on the loan after the bank sells the property. The difference may be regarded as income on which you will be taxed.
Our Los Angeles strategic mortgage default attorneys can help you make the right decision and, since we are a law firm offering comprehensive debt relief, we can be your guides through whichever choice you make.
Call (310) 220-4147 to schedule an initial consultation today.
Hear From People We've Helped
Honesty, Integrity, and Respect for the LawSally C.
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