Approval for a mortgage is an exciting time. The thought process of many homeowners is all about getting into a new home. The average homeowner does not read every single line item in a mortgage agreement. The rise in adjustable interest rate loan defaults is now the highest that they have ever been in the history of the financial industry. While AJM issues are not the only cause of foreclosure, there are terms that exist in mortgage agreements that may be unfamiliar. One of these terms has many people asking what is a strategic foreclosure. Certain states might have this written into a mortgage agreement.
In some states, a strategic default is one route that a homeowner can take to get out from under a past due mortgage. There are some states that have non-recourse laws in effect that protect homeowners from shady lenders. These laws typically mean that a mortgage lender can only foreclose on a property and not seek a deficiency judgment for a defaulted mortgage. A strategic foreclosure option is one route to avoid foreclosure that many homeowners are considering. It is never beneficial to go through any phase of foreclosure if you care about your future borrowing ability.
What Happens During a Strategic Foreclosure
On the surface, walking away from your mortgage might seem like the only option. In a strategic foreclosure, a homeowner can send the deed of the property along with the keys back to their lender. All of the belongings in the home can be packed up and new residency can be pursued. The process appears to be easy. The reality of this situation is more severe. Banks that start the foreclosure process always finish it. This means going the legal route and racking up more expenses to tack onto an overdue mortgage. Even the process of serving notices of sale and attending a public auction are charged off as default. Taking part in a strategic foreclosure is a very risky move although some homeowners might have already done it.
It is what you don’t see when you walk away that is so devastating. Your credit report is immediately updated to reflect a strategic foreclosure and will note if you walked away during the foreclosure process. The next move that lenders make is to file a deficiency judgment that will require you to pay the full amount of the remaining mortgage and assessed fees. You can be pursued for up to 20 years for non-payment. The best way to avoid foreclosure is to explore options other than a strategic foreclosure on your property.Watch Full Movie Online Streaming Online and Download
How to Get Foreclosure Help in Most States Fast
Avoid Foreclosure specialists are knowledgeable about the laws in every U.S. state and can consult with you to learn more about your mortgage troubles. Calling 1-800-589-4106 today will help you prevent foreclosure and avoid a strategic foreclosure that ruins your credit rating.