As a homeowner, it can be very difficult to make your mortgage payment month after month for years. This is especially true if you owe more than what your home is worth. In this situation, you might be considering strategic default. Here are the basics of what you should know about strategic default.
What is Strategic Default?
Strategic default is a situation in which a homeowner has the ability to make mortgage payments, but he simply stops making them. This is usually the case when the value of a house declines significantly, and the homeowner is upside down on his house. Eventually, the homeowner will walk away from the house, and allow the lender to foreclose on it. (more…)Read More »