Do you know that 36% of Americans would consider “strategic default’ – just a catchy term for walking away from your mortgage – if they were underwater (owned more on their home than what it was worth)? There is a growing trend of distressed homeowners who have heard that a strategic default may be their best option, they couldn’t be further from the truth. There are alternatives to foreclosure that can actually help homeowners on to a more stable financial future, rather than further damage their credit, security clearance, or current or future employment.
3 reasons why the term “strategic default’ is misleading:
- There’s nothing strategic about defaulting on purpose, especially when you have options like short sales, mortgage modifications, and refinance (just to name a few) that may keep you from foreclosure.
- The waiting periods to apply for a new mortgage are at least five years less in a short sale vs. a foreclosure.
- A foreclosure will show up on your credit report every time you apply for a home loan, car loan, new job, etc., and will affect your financial situation for many years to come.
If you are underwater and can no longer afford your mortgage payments, you need to create a genuine strategy to avoid foreclosure, helping to provide stability for you and your community.
If you have any questions about what steps you or someone you care about should take next, contact me today @ 407-758-1020.
IMPORTANT GOVERNMENT DISCLOSURE: You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer). If you reject the offer, you will not have to pay us for our services. Charles Rutenberg Realty is not associate with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.