Blog Roll Short Sales for Upside Down Homeowners Lenderscompete.com   Debt Help Center National Mortgage Help Center	Strategic Mortgage Default What is a Strategic Default? A strategic default is when you plan to not pay your mortgage when in fact you have the money pay.  You make the decision to give the house back to the bank rather than continue to make the payments.  A homeowner does this because the mortgage balance far exceeds the value of the property.  An estimated 35% of Americans homeowners are in this situation. Homeowners are not the only ones in this situation.  Real estate developer Tishman Speyer and money manager BlackRock, Inc. bought Stuyvesant Town in NY City for $5.4 billion in 2006, when the market was booming.  In January of this year they strategically defaulted on their mortgage by withholding a $16.1 million interest payment.  The property is worth less than $2 billion today. Strategic Default vs. Short Sale If you are considering a strategic default, keep in mind that it will have a dramatic affect on your credit.  An alternative to a strategic default is a short sale.  A short sale is when the lender agrees to allow you to sell your property for less than the value of the loan and thereby forgives the difference. A short sale will have a much less dramatic effect on your credit and you can buy another home in 2 years. Recent News and Information About Strategic Mortgage Default Walk away from your mortgage? Time to get 'ruthless' ‎ CNN - Les Christie - 1 day ago "Strategic default can be a financially sophisticated thing to do," said Mark Fleming, chief economist for CoreLogic, the financial analytics company. ... Mortgage: Walk Away Or Get Ruthless?‎ - KSBW The Central Coast all 61 news articles » KXLY Spokane ► The higher costs of strategic mortgage default ‎ MarketWatch - Amy Hoak - May 17, 2011 CHICAGO (MarketWatch) — Homeowners considering strategic default need to know this before taking the leap: The fact that you could ... A Conspiracy Theory For Why There Aren't Many Foreclosures In New ... ‎ Business Insider - 3 hours ago Roberts says the conspiracy will unravel when strategic defaults soar in New York City. Strategic default is usually associated with a beaten down market ... Business Insider Survey: More Underwater Homeowners Open to Strategic Default ‎ DSNews.com - Carrie Bay - May 13, 2011 The GSE found that because of feelings that they are less financially secure, 27 percent of homeowners with negative equity would consider strategic default ... Signs show strategic default on the decline ‎ Housing Wire - Jon Prior - May 16, 2011 Definitions for what qualifies as a strategic default varies. But analysts took a deeper look in the report. One widely held requirement for strategic ... JPM Underwater Mortgage? Bail Yourself Out ‎ Newser - 17 hours ago By Griffmaster_01, Newser User (User Submitted) – Through a little-known loophole called strategic default, an increasing number of indebted homeowners are ... HomeLiberty offers 'strategic defaulters' chance to keep homes ‎ Bizjournals.com - Mark Calvey - May 23, 2011 A Walnut Creek startup debuted a service Monday designed to help home borrowers go through "strategic default," but possibly keep their home, while shifting ... The Strategic Default Threat Rises, As 54% Of Americans Expect No ... ‎ The Business Insider - May 24, 2011 As one attorney said in my recent article on strategic defaults: “More and more Floridians who pay their mortgage feel like chumps compared to the ... Sinking Values Prompting Homeowners to Consider Strategic Default ... ‎ LoanSafe - Alex Ferreras - May 25, 2011 May 22–STRATEGIC DEFAULT (Source: Chicago Tribune By Mary Ellen Podmolik) - opting to walk away from a mortgage ... Sinking values prompting homeowners to consider strategic default ... ‎ TribLocal - May 22, 2011 (Michael Tercha/Chicago Tribune) Strategic default — opting to walk away from a mortgage you can afford — isn'ta new phenomenon in the housing crisis. ...
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