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Is Walking Away The Right Thing To Do?

by elizabetheugenio on February 21, 2010

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

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Article by Elizabeth Eugenio

Since 1991, I have served the residents of Chino Hills and surrounding cities. Providing exceptional customer service has been my top priority earning me referral and repeat business from family, friends, associates and past clients. The advanced training in finance, marketing and technology I received as a Certified Residential Specialist (CRS) designee provides you better representation making the buying and selling process a more profitable and easier experience. Only 4 % of Realtors in the nation has earned this designation. Short Sale and Foreclosure Resource (SFR) is the only designation recognized by the National Association of Realtor for short sale and foreclosures. This designation and the (CDPE) Certified Distressed Property Expert has allows me to better assist you as a buyer on your purchase of these properties and as a homeowner experiencing financial hardship avoid foreclosure. Additionally, the Seniors Real Estate Specialist (SRES) designation has helped me serve the special needs of the 55 years and better population by making the process easier and help keep more of your r money when you move. Contact me for all your real estate needs and you can count on me to provide you better representation and make sure you have an easier and smoother transaction. I can be reached at (909) 376-8615 or at: Elizabeth@HomesByLiz.info.

Elizabeth has written 27 articles on this blog.

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