Tagged : strategic default

I plan to sell short. Should I make my mortgage payment anymore?

This is by far the most popular question asked by my Connecticut short sale clients. It would also rank as my least favorite question as the truth is I do not feel it is my position to advise anyone to, or not to, pay their mortgage. In fact, you'll be hard pressed to find any professional (lawyers included) to directly advise you here. This is a personal decision that you will have to make yourself. I will however give you the consequences of the action either way so that you can make an educated decision for yourself:

If you DO MAKE the mortgage payment:

• Your credit will remain intact and the foreclosure process will not begin 
• You can avoid endless harassing collection…

Is FORECLOSURE really a four letter word? Rate of strategic default continues to grow.

Tired of carrying that house? It seems more and more folks are just saying no to making their mortgage payments and are choosing instead to simply walk away.

It is now estimated that 1 in 5 mortgage defaults is strategic. Strategic default is when the homeowner has the ability to pay, yet chooses not to and walks away simply because they feel that the home is no longer a good investment.

In this recent 60 minutes episode several people openly discuss their strategic default without shame. It is my opinion that this trend will continue to grow for the next several years. With the lingering inventory of overleveraged homes still left out there and…

What will happen if I don't make my mortgage payment anymore?

Are you considering or have you made the decision that you cannot or will not pay your mortgage any longer?

Here's what you can expect:

What will happen:

• Your credit score will start dropping with the first missed payment and will continue to sink.
• After about a month or two of nonpayment your lender's collection department will start calling you repeatedly at all hours of the day and they will send threatening letters.
• After about 3-6 months of non payment your lender will start foreclosure proceedings. The time between that and the actual foreclosure sale date varies greatly by lender. It could 3 months...it could be a few years.

What will NOT happen:

• No…