Myths & Misrepresentations of Strategic Default

Recently, there have been reports claiming that a “strategic default” can be an appropriate and even beneficial reaction to an upside-down mortgage or impending foreclosure. While this idea has spread rapidly, the truth is that a default is never an easy road to choose, and rarely is it ever strategic. In fact, defaulting on your mortgage can be incredibly damaging to the financial future of you and your family. Unfortunately, the ramifications of a “strategic default” are rarely – if ever – explained, leaving many homeowners stranded on an island of misinformation.

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Austin Kilgore over at REO Insider Blog has a post about how JP Morgan is allowing the owner of a 71-unit apartment complex in Florida to do a short sale for 25% less than the original mortgage principal. The property was originally purchased in 2008 for $4.1million with a mortgage of $3.2million. The short sale [...]

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The New York Times has an article today about how “the rich” have stopped paying their mortgages at a rate “that greatly exceeds the rest of the population”. More than one in seven homeowners with loans in excess of a million dollars are seriously delinquent, according to data compiled for The New York Times by [...]

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Freddie Mac Short Sales Up 600%

by Gary Sattelberger

Hat tip REO Insider Dispelling a commonly held myth that banks don’t want to do short sales; Freddie Mac CEO Ed Haldeman said the company has seen the number of its short sales increase 600% from 2008 as lenders look to dampen the impact of foreclosures hitting the marketplace. And then there is this; In [...]

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Welcome to ShortSaleForeclosureTalk.com.  My name is Gary Sattelberger and as a licensed real estate agent I speak with troubled homeowners everyday about the options available to avoid foreclosure.  And as a foreclosure survivor I understand the stress and often, despair that you face when dealing the possibility of losing your home and the financial difficulties [...]

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