Strategic default has come down to an ethical question for some homeowners. Do you stay and continuing paying on a home that you owe more money on than it is worth or do you walk away? From a moral standpoint you are committed to pay back the loan, and you are financially obligated. Lenders may be able to pursue you in court in what’s known as a “deficiency judgment,” in seeking a full repayment of the mortgage balance, plus you will have to rebuild your credit history. But if you are in such dire straits where you can’t make your payments, because of job loss, illness or whatever the hardship may be, than you have to do what you have to do.
But now some homeowners that can actually afford to pay their mortgage but choose not to, are walking away. People are angry at the banks The attitude is they don’t care about you so why should we care about them. For the bank it is simply an economic transaction, they have no moral qualm about taking your house, and they feel no moral obligation to modify your mortgage even if you’re in a difficult financial situation.” Economists at Goldman Sachs recently forecast that after bottoming in 2013 house prices won’t recover their 2006 peak until 2023. So what do you do? Read more…
Are you underwater on your Fountain Hills or Scottsdale mortgage and are not sure where to turn? Do you qualify to sell your home short? Call/Text 480 888 6708 or email me for quick answers to your questions. I’ll be happy to refer you to a number of professionals that can give you the advice you need to see if you can qualify to do a short sale.
