Jupiter Strategic Default Lawyer
Is a Strategic Default Right for Me?
According to a survey by the New York Federal Reserve, two thirds of Americans believe that real estate is a “somewhat good” or “very good” investment, according to Business Insider. But, if there is anything that Americans have learned since the housing crash, it is that the housing market is unstable, and a downturn can happen at any time. In fact, right now a study found that renters in Florida are more likely to increase their wealth than property owners, because the money they save by renting can be reinvested and increased faster than those with their money stuck in real estate, according to the Sun Sentinel. Real estate is generally touted as a foolproof investment, but the truth is that a property can suddenly lose half of its value in a matter of years without any warning, and the property owner will find themselves underwater with seemingly nowhere to turn.
If you purchased property and it is lost a significant portion of its value, and you owe more than the property is currently worth, a strategic default may be right for you. This is true even if you still have the financial capability of paying the mortgage. But does it make financial sense to pay a mortgage of $500,000 on a home that is worth $300,000? In most cases, it does not, as this would essentially be flushing your hard earned income down the drain. Large businesses take advantage of strategic defaults all the time, and pull out on large-scale projects in order to cut their losses and invest their time, effort, and finances somewhere else. You can too, and a Jupiter strategic default lawyer can help. We have been serving clients in South Florida for more than 20 years, and have the experience to get you out of your current situation so that you can start fresh.
What Does a Strategic Default Entail?
A strategic default requires that you stop paying the mortgage on purpose so that the lender forecloses. This gets you out of future mortgage payments, and, if you live in the home, means that you can continue living in the house or condominium months or even years afterwards for free, since foreclosure is a long process. This provides you time to negotiate with the bank, find a new place to live, and deal with other debt.
Downside to Strategic Default
- It will harm your credit score;
- It will make it more difficult to get a loan in the future;
- In some cases it can make securing certain types of employment more difficult; and
- It can make it more difficult for you to secure a place to live in a rental property.
A Strategic Default Lawyer is Here to Help
Is your home or investment property underwater? A strategic default lawyer with Nowack & Olson may be able to provide a solution, so that you can free up your finances and get out of an unfair mortgage situation. Contact us today for more information.