Strategic Default How To

When deciding to make the decision to do a strategic default, it is important to weigh the pros and cons. Click here for strategic default consequences When a homeowner strategically defaults on their home, they are following the mortgage contract that states that in the event of default or non-payment of a mortgage loan, the home shall serve as collateral and the lender has the right to sell the property to get back the money they lent. The lender / bank that lent the money against the home, decided at the time of which the loan was made, that your home was adequate collateral and a reasonable risk.

Here is how to do a strategic default:

  1. Decide if your home is worth keeping at the present value by looking at websites such aswww.Zillow.com or contacting a licensed real estate appraiser.
  2. Make sure the lender isn’t willing to lower the principle balance or drop your rate to a payment that makes your home worth keeping.
  3. Consult with an attorney or professional that knows the laws of the state where you home is located to discuss the timeline and consequences.
  4. Consult with a CPA to discuss the tax ramifications of a default.
  5. Make a plan as to how long you will stay in the home payment free.
  6. Make a plan as to how you will use the money normally paid to the lender for your mortgage payment. (Most use it to pay down other debts and high interest loans, put money away in a savings account or certificate of deposit, or invest it wisely and conservatively.  READ MORE ON STRATEGIC DEFAULT HOW TO

About Jon Maddux

About Jon Maddux

Jon D. Maddux has been Acting CEO of You Walk Away, LLC since December 2007.  Although there has been a bit of controversy with the company name, the entrepreneur passionately believed that homeowners across America would desperately need foreclosure advice and so he came up with the Walk Away foreclosure help website.  Having over 11 years of real estate and finance experience, Maddux realized with the burgeoning credit crisis, many homeowners in adjustable rate mortgages and high LTV loans were unaware of what they were about to face. With that understanding, Maddux developed an affordable business model that allowed homeowners to know their rights and use the law to their advantage.  Beyond the monthly foreclosure monitoring service and cease and desist letters, You Walk Away provides attorney consultation in each state and CPA consultations.  Homeowners are armed with the knowledge and peace of mind they need to go through possibly the toughest experience of their lives.

Since January 2008, You Walk Away, LLC has helped over 4000 customers navigate through the hardship of foreclosure and / or a short sale.  You Walk Away has been featured in news publications and TV programs such as: ABC Nightline, CNN, Yahoo Finance, Time Magazine, The Wall Street Journal, front page of The New York Times, Bloomberg, Forbes, Fortune, Money Magazine, NPR, AP, NBC, CBS and Fox News among many others.  Many of these publications have used quotes from Maddux about foreclosure.

 

At www.youwalkaway.com and now on HousingStorm.com , Maddux writes about the foreclosure crisis from the front lines.   As you can imagine, with helping thousands of customers go through this process, there is special insight and first hand knowledge that he gets and is able to share with his readers.

This entry was posted in Everything About Foreclosures and tagged Foreclosures, Strategic Defaults, Strategic Foreclosure, Walk Away. Bookmark the permalink.

2 Responses to Strategic Default How To

  1. Pingback: Many Homeowners Paid Their Lender For The Right To Strategically Default | Should I Walk Away From My Mortgage?

  2. Pingback: It Is Finally Ok To Walk Away From Your Mortgage | Should I Walk Away From My Mortgage?

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