Strategic Default / Short Sale / Foreclosure
Since 2006 Arizona Elite Properties - AZhomes4u.com has specialized in assisting homeowners who are behind on there mortgage payments and facing foreclosure or are already in foreclosure. I can and WILL help you with your options, HELP you identify your options weather it's Short Sale, Strategic Default. Deed in Lieu or HELP you with Loan Mod. Let me Help you identify your options.
A strategic default is the decision by a borrower to stop making payments (i.e. default) on a debt despite having the financial ability to make the payments.
This is particularly associated with residential and commercial mortgages, in which case it usually occurs after a substantial drop in the house's price such that the debt owed is (considerably) greater than the value of the property — the property negative equity or "underwater" — and is expected to remain so for the foreseeable future, such as following the bursting of a real estate bubble. Such borrowers are called "walkaways."
This occurs when a homeowner is able to pay their mortgage but because they are underwater or simply sick of the level of deficiency they decide to stop paying. If you voluntarily walk away from your mortgage because you owe more than the home is worth, are you a bad person? Should you even care?
This is particularly associated with residential and commercial mortgages, in which case it usually occurs after a substantial drop in the house's price such that the debt owed is (considerably) greater than the value of the property — the property negative equity or "underwater" — and is expected to remain so for the foreseeable future, such as following the bursting of a real estate bubble. Such borrowers are called "walkaways."
This occurs when a homeowner is able to pay their mortgage but because they are underwater or simply sick of the level of deficiency they decide to stop paying. If you voluntarily walk away from your mortgage because you owe more than the home is worth, are you a bad person? Should you even care?
STOP FORECLOSURE NOW!!
Linda Wieczorek 602-391-8246
Luck doesn't save you from Foreclosure
Knowledge and Experience Does!
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The answer is pretty simple: To secure your financial future, point blank! Let's look at your other options...
1. Do Nothing: Your lender will file for foreclosure against you, and eventually attempt to sell your home at a sheriff sale, where the will not receive anywhere close to what you owe on the property. They will sue you and obtain a deficiency judgement for the difference between the total amount that was owed (including fees) and the amount they were able to sell it for. You will have a completed foreclosure on your credit for 7-10 years or more, and will not be able to buy another home with conventional financing for MANY MANY years.
2. Get a Loan Modification: IF your lender grants you a modification after many months of deliberating, they will take the amount you are behind and add it to your balance (this puts you further behind since you probably ALREADY owe more on the house than it is worth). IF you're lucky, they will drop your interest rate a couple of points. However, due to the amount they put back onto your balance, your saving will not be very significant. A study of modified loans showed that close to 90% of the homeowners were in foreclosure again within 2 years!
3. Just give the house back to the bank: This is known as a deed in lieu of foreclosure. The bank still may have the right to pursue you for a deficiency judgement and if you have a second mortgage company, they will most likely not agree unless you sign a promissory note for the balance. You still must pay the second mortgage!!! This will also have a VERY negative impact on your credit rating!
"So what do I do???"
A Short Sale!!!
This truly is your BEST option! AZPrideProperty.com with your lender to try and make sure that you do not receive any deficiency judgements or promissory notes by actually increasing our purchase offer to the lender! If we make a little less, than so be it! We want our clients to walk away free and clear!
Questions ?? Linda Wieczorek AZhomes4u@gmail.com
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