3 Reasons the Term “Strategic Default” Is Misleading

In a recent study, the Chicago Booth/Kellogg School Financial Trust Index found that a full 36% of Americans would consider “strategic default”—another term for walking away from your mortgage—if they were underwater (owed more on their home than what it was worth).

Now that more than one in four American homeowners is “underwater,” I feel that it’s important for the community to know the truth about strategic default.

The truth is the foreclosure process carries with it credit issues, current and future employment challenges, issues with security clearance and possible debt collections.

That’s why it is vital to explain the 3 reasons why the term “strategic default” is misleading:

1. 1.      There’s nothing strategic about defaulting on purpose, especially when you have options like short sales, mortgage modifications, and refinance (just to name a few) that may keep you from foreclosure.
2. 2.      The waiting periods to apply for a new mortgage loan are at least five years less in a short sale vs. a foreclosure.
3. 3.      A foreclosure will show up on your credit report every time you apply for a home loan, car loan, new job, etc., and will affect your financial situation for many years to come.
4. 
   
5. If you are underwater and can no longer afford your mortgage payments, you need to create a genuine strategy to avoid foreclosure, helping to provide stability for you and our community.

If you have any questions about what steps you or someone you care about should take next, contact me today!

Shanta Patton – Patton Team – Wynn Realty Group – Las Vegas Short Sales 

702-302-2760 * Email Me Today! *

www.ShortSaleLasVegasToday.com – www.SellingLasVegasToday.com

As the Mortgage Debt Relief Act expires, Las Vegas distressed homeowners are running out of time.

Time is Running Out: How the Mortgage Debt Relief Act can save you!

In 2007, the Mortgage Debt Relief Act was passed in an attempt to help the millions of homeowners who, due to the housing crisis and economic crash, suddenly found themselves in danger of losing their home to foreclosure.

The act has helped many Las Vegas distressed homeowners find solutions to avoid foreclosure and opened up options to them that were previously unavailable.

However, the Mortgage Debt Relief Act was always intended to be a temporary solution and it is now set to expire at the end of 2012. For distressed homeowners, this means that time is limited for you to take advantage of this program.

Time is running out. But there is still a chance to change your financial direction and avoid foreclosure.

Contact  Shanta Patton and the  Patton Team Today.

Shanta Patton – Patton Team – Wynn Realty Group – Las Vegas Short Sales – 702-302-2760 – Shanta@SellingLasVegasToday.com – www.ShortSaleLasVegasToday.com – www.SellingLasVegasToday.com