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Strategy...strategy...strategy...

Posted on in Bankruptcy Attorney

For many borrowers, a strategic default is a good option. A strategic default is when the borrowers decides to stop making their mortgage payments. A strategic default generally is used for properties that are “under water”, meaning that the value of the property is lower than the debt owed. Why a strategic default? There are many reasons. For example, many banks will not consider loan modifications or other workout options unless the borrower is in default, meaning that the borrower has missed mortgage payments.

However, although a strategic default may be a viable option for many borrowers who are interesting in fighting back against the bank, there are many factors to consider. One such factor is that a strategic default will inevitably result in a negative credit rating. Those interested in pursuing a strategic default should consult an attorney for advice and further information.

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