on Aug 24th, 2010Strategic Mortgage Default a Risky Strategy for Indianapolis Homeowners
The sobering news today that Indianapolis home sales have plunged more drastically than anyone expected might have some Indianapolis homeowners wondering if a strategic mortgage default is their best option.
After all, there’s a good possibility that stalled sales and a huge inventory of Indianapolis homes for sale could lead to further price declines, meaning many more borrowers will owe more on their homes than they’re worth. Why not just walk – make that run – away?
Because, experts warn, no matter how dire your circumstances a strategic default (purposefully walking away from your mortgage debt) will probably only create additional heartache and problems for you and your family. The consequences of a strategic default are long-lasting and, according to the American Bankers Association, include:
· Ruined credit
· Inability to get another mortgage
· Tax liability
What might seem today like the less painful and easier route might prove in the long run to be the most destructive. Instead of walking away, homeowners should contact their lender to seek mortgage modification or to negotiate a short sale. Mortgage modification allows you to stay in your home and should lower your monthly payments, while a short sale allows you to sell your home for less than what is owed the bank. Both these options also have consequences, so be sure to research what you’re getting into.
Indianapolis homeowners in danger of foreclosure can get free help at the Indiana Foreclosure Prevention Network (IFPN) to be held September 1, 2010. Visit http://www.877gethope.org/ or call 877-GET-HOPE for more information.
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For more information on Indianapolis real estate, contact your Indianapolis real estate agent:
Pat Haddad
Haddad Team, Keller Williams Realty
317-840-7555
Pat@HaddadTeam.com
Aimee, your comments are so on target. The easy way out is not the best way. I addition to loan modifications that comprise a very small percentage of those who request it, and short sales that most times end up in foreclosures due to the banks’ high expectations, something new banks are doing is to do a “deed in lieu” A deed in lieu allows the homeowner to sign over the deed to the bank (while the home is not trashed and vandalized), in lieu of having the mortgage liability. This process allows the bank to list and sell the property much quicker and a lot less expensively than having to foreclose.
We at http://www.MortgageMitigationLLC.com and
http://www.ShortSaleFriends.com offer our expertise to help homeowners to find the best solution for them in the long run.
Thanks for posting.
William