Many homeowners choose to walk away from their mortgage even if they can afford to make payments because the value of their property has declined.  It is called Strategic Default.  They feel it is a beneficial reaction to an upside down mortgage.

The difference between a regular default and a strategic default is that on a regular default, the homeowner has a real hardship due to job loss, divorce, or other circumstances brought about by the current economic condition.  On a  strategic default, the homeowner simply chooses to stop making payments even if they can afford to make payments because they feel that they had made a bad investment.

A default is rarely strategic and causes extreme damage to your credit and carries financial consequences.  Lenders are looking for ways to avoid the foreclosure process as much as homeowners.  The US  Treasury announced new incentives  to simplify the short sale process through the HAFA program which will start on April.

Be sure to consult and educate yourself as to what your options are.  As a CDPE designated agent, I can provide you with a safer alternatives to foreclosure.  I have prepared a free report to educate and help you determine the best route to take. Just call my 24 hour Free Recorded Message at (877)-519-8587 extension 84 to get a copy of the report.

Elizabeth M. Eugenio, (909) 376-8615, Email: Elizabeth@HomesbyLiz.info

Certified Distressed Property Expert (CDPE), Certified Residential Specialist (CRS), Graduate Realtor Institute (GRI)

www.HomesByLiz.com, www.ChinoHillsCARealEstate.com

Is Walking Away The Right Thing To Do? is a post from: Chino Hills Real Estate Resource Center