According to the credit reporting agency Experian, about one in five residential home foreclosures in the United States is the result of a strategic default. A strategic default on a mortgage is a voluntary decision by a borrower to default when a home becomes a bad investment. There are unavoidable consequences to a strategic default, and you may have other and better options. If you choose strategic default, retain the advice and services of an experienced Dallas real estate attorney to guide you through the process and protect your interests. Call Richard Weaver at (817) 422-5929 or (214) 960-4125 for the advice and guidance you’ll need.
Escaping a Bad Investment
When homeowners owe more than their homes are worth, some decide to stop making mortgage payments. These owners could pay if they chose to – they aren’t in financial dire straits – but they’re choosing not to sink more money into a bad investment. Before you decide simply to walk away from your home, let an attorney help you make the best choice. By refusing to make mortgage payments, you force the lender to initiate foreclosure, which may be a consequence you should avoid. In the state of Texas, if the foreclosure is on a home equity loan, a “deficiency judgment” can be issued when the mortgage balance exceeds the sale price. The difference between the sale price and the total debt is called a “deficiency.” In Texas, a lender may obtain a deficiency judgment after either a nonjudicial or a judicial foreclosure.
Get the Advice You Need
A strategic default on a mortgage will also have a negative impact on your credit. You probably will not be able to obtain another mortgage for at least seven years, and you may damage your ability to obtain auto loans and other types of credit. Don’t just walk away from your home without speaking first to a good Dallas real estate lawyer. Get the legal advice you need by calling Richard Weaver at (817) 422-5929 or (214) 960-4125 right away.