If you are underwater on your mortgage, you may be wondering what to do next. Do you keep making payments in the hope the housing market will turn around and the value of your home will increase? Do you simply keep your fingers crossed that you will be able to break even at some point in the future? Or do you accept the fact your home has become a bad investment and take action to try and cut your losses? It is these types of questions and more you will need to answer before determining how to proceed and a bankruptcy lawyer from our firm can help.
The attorney at our firm has years of experience and a long track record of success with helping clients resolve their financial difficulties and coming up with the legal solution most suited to their individual needs. In these types of situations, a strategic default may be able to help you minimize your losses and allow you to move on without any long-term consequences. A strategic default, also referred to as a "voluntarily foreclosure," occurs when a borrower makes the decision to stop making payments on a home loan, regardless of his or her ability to pay.
Once the borrower has defaulted on the loan, the lender will be forced to foreclose on the property. While it is true that a foreclosure will have a significant impact on a person's credit and could present future issues when attempting to acquire housing, strategic default may provide you with the resolution you seek. There are downsides to strategic default so individuals who are considering planning a strategic default should only do so under the direction of an experienced attorney.
If certain actions are not taken to preserve your assets and protect your interests, you could end up facing serious financial and legal complications. If you are considering strategic default as a way to eliminate an underwater mortgage, call Rick Hodge, Attorney at Law, L.C. right away. At our firm, you are a name, not a number, and we are committed to having a Kansas bankruptcy lawyer provide you with the legal advice and unwavering representation you deserve. Call now to get started.