Strategic Default: The Consequences of ‘Walking Away’

Strategic Default, when a homeowner decides to walk away from an underwater mortgage, is becoming more and more common. This type of default presents both pros and cons for the homeowner. On the one hand, strategic default can provide relief from a difficult financial situation; on the other hand it has serious legal and financial consequences.

For those considering strategic default, it’s important to understand that walking away from your mortgage may have long-term repercussions. Before making this decision, be sure to consider all possible ramifications including credit score damage, difficulty securing future loans, potential lawsuits or even criminal charges in some states. It’s also important to remember that when you strategically default you are still obligated to pay off any remaining debt after foreclosure is complete - even if your home has been sold at auction for lss than what you owe on it.

The Law Offices of Omar Zambrano has helped thousands of people and them businesses in the past to get out of debt and start over.

Our goal is to help you find a fresh start FAST!

Schedule your free consultation today! By Calling 626-338-5505 or visiting us at 12738 Ramona Blvd Baldwin Park CA 91706