A Strategic Default is the decision by the borrower to stop making payments on the loan or mortgage despite having the ability to make the payments. A strategic default is a carefully considered business and investment strategy to avoid foreclosure process in Florida.
The decision to strategically default has significant implications for a homeowner and should not be made without consulting with a knowledgeable attorney from the Florida Foreclosure Law group. When the borrower does not make payments on the mortgage, the lender can obtain the title to the property through Florida foreclosure. The lender cannot obtain a judgment for any remaining balance owed on the loan.
Strategic Default Process
During the strategic default, the homeowner can live in the home until the lender starts the foreclosure process in Florida which could take weeks to months. During this time the homeowner should be working to eliminate or negotiate other debt. The lender has the option to allow the homeowner to stay in occupancy of the property until the lender can take the title and put the house on the market.
If the property is not sold for an amount equal to pay off the debt, the lender will often file a suit for deficiency judgment against the homeowner. Once the judgment is obtained, the homeowner’s assets that are not protected are normally seized and liquidated to satisfy the judgment.
For an individual or family who has no appreciable assets, the implications are less and a simple walk away from a poor investment might be the best choice to avoid foreclosure process in Florida. It is strongly recommended that a decision should not be made without consulting with a knowledgeable attorney from the Florida Foreclosure Law group.
For an individual or family who has a significant amount of assets, they will not be able to seek protection through federal or state bankruptcy laws. Meaning, they are unable to walk away from their mortgages to start over. It is highly recommended to protect your assets properly under the advice from the attorney at the Florida Foreclosure Law Group.
When handled properly, the complex nature of a strategic default in Florida can beneficial for all parties involved. The strategic default protects the remaining assets of the homeowner while giving the lender fair market value for the property. This also reflects better on personal credit score than a Florida foreclosure.
The Deed in Lieu of foreclosure in Florida is one of the four options available to the debtor. The Deed in Lieu is when the debtor has determined they must give up their property voluntarily to the lender as a result of no longer being able to afford or pay the loan installments. The lender then removes the remaining mortgage from the borrowers’ name. This process is conducted by mutual consent of the debtor and the lender. The Deed in Lieu of foreclosure in Florida is a legal deed, recorded for public record in the county court.
The attorney at Florida Foreclosure Law Group will work diligently to help make and get you back on track to keep you in your home. To receive your free consultation, call Florida Foreclosure Law Group today at (888) 344-8287
If you are upside down on your mortgage, not looking forward to the foreclosure process in Florida, and possibly considering a strategic default, we want to help you. The experienced professionals at Florida Foreclosure Law Group understand the multiple reasons borrowers might have to decide to walk away from their properties. In today’s economy, we are seeing more and more evidence that people are choosing to strategically default on their mortgages.
Deciding to Walk Away
Florida Foreclosure law group is here to educate you and help you find the right solutions as you consider this voluntary foreclosure process. We aim to make sure the process is considerably less complicated than thought otherwise possible. Call the Florida Foreclosure Law Group to discuss your unique situation or click here to send us an email.