Be Careful Exercising Your Independence
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I hope you all had a fun and safe 4th of July weekend! Yesterday was our country’s celebration of independence. But what about our financial independence?
When the banks have ‘bad debt’, they write it off. When a business or corporation has a ‘bad debt’, write it off. BUT when a homeowner has a ‘bad debt’, just writing it off ain’t gonna happen.
- Image via Wikipedia
A lot of people who can afford to stay in their homes are just saying good-bye to them and their mortgages by exercising their freedom of choice and just walking away from their financial responsibilities. This is commonly referred to as Strategic Foreclosure or Strategic Default.
So, what’s a honest homeowner to do when they’re home is now worth much less than they paid for it only a few short years ago? Well, before you just get up and walk away you should definitely consult with a real estate attorney, a good Realtor, and also a CPA to find out what options and legal consequences you’ll have depending on your choices and situation.
You could let the bank foreclose, or you could Short Sale your home. REOs and Short Sales in Stockton and surrounding areas are the bulk of what’s on the market these days. Just look around and I’m sure you’ll see For Sale signs up and down many streets in your own neighborhood.
Walking away from your home that’s “under water” (worth less than you owe) instead of trying to work with your bank(s) or having a Realtor short sale it for you, could actually leave you in deep water.
Here is some more specific information about this…CLICK HERE.
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- The Short Sale Process (home-mortgages.suite101.com)
