Ever since the subprime lending market began its decline about three years ago (there were strident warnings about subprime in 2007, a full year before the global financial crisis) there has been something of a debate surrounding whether or not foreclosure might actually be a smart financial move in some situations. There is even a name for a foreclosure done on purpose: “strategic default.” There are, of course, issues surrounding the idea of strategic default, and anyone deciding that foreclosure is the smart play will have to work through those issues.>>> [Read More]
Tag Archive: Strategic default
What To Do If You’re Underwater on Your Mortgage
The falling home values that came with the mortgage market crash and recession have resulted in a number of homes showing negative equity. These underwater mortgages could possibly put a strain on the economy if they result in foreclosure. However, it is not a foregone conclusion that foreclosure will result when you have negative equity.>>> [Read More]
Payment Priorities: Making Your Mortgage Payment First
When you are in financial trouble, it can be difficult to decide which obligations to pay, and which to let slide. In a perfect world, of course, you wouldn’t have to make this decision. But many are finding themselves in this heart-wrenching situation — even if they made all the right moves before buying a home. The economic climate has led to a lot of reductions in income due to fewer hours, fewer benefits and even outright job loss. As emergency funds (for those who have them) run low, and as the bills pile up, which of those bills to pay becomes a matter of serious thought. One thing to consider, though, is that you should put your mortgage payment near the top of that list.>>> [Read More]
