Many homeowners that are struggling financially are faced with very difficult financial decisions. Do I feed my family or pay my mortgage? Should I try to keep my small business afloat or pay my home mortgage? Do I pay my medical bills or pay my mortgage? In many cases there is no "right" answer to these questions. The homeowner must look at their own circumstances and determine what will be most beneficial for them in the long-term.
Increasingly homeowners are choosing strategic foreclosure as a way to pull themselves out of a dismal financial situation. When the lender commences foreclosure proceedings against a homeowner, the lender cannot accept any more mortgage payments from the homeowner while the case is pending. This allows the homeowner to save the amount that they pay on their mortgage every month. This can help homeowners solve other financial issues that they may be facing. Since many foreclosure proceedings last for over two years, a homeowner can save a substantial amount of money while they live rent free.
Homeowners can sometimes get positive results from strategic foreclosure. However, there are many potentially negative consequences to strategic foreclosure. The main consequences to any type of foreclosure are the hit to your credit score and the fact that you lose your home. If a homeowner does not follow the proper procedure when strategically foreclosing, the consequences can be much worse. If you are thinking of strategically foreclosing on your home it is imperative that you contact a Florida Foreclosure Lawyer or Jacksonville Foreclosure Defense Lawyer to discuss your options and if a strategic default may be a good option for you and your family.
