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Tag Archives: strategic default

My Bank of America Mortgage Modification is a Joke. – Susan

Real Estate Concept

“Dear Steve, Proposed Loan Modification-Only 17 dollars less than my original mortgage. Why? I have been trying to get a loan modification with Bank of America for 4 years now. I kept getting the run around and it seemed every time I called I got the same old story-the paperwork has expired and must be resubmitted. I went through this ... Read More »

I Filed Bankruptcy Last Year But Now Want Out From Under My Mortgages. – David

Real Estate Concept

“Dear Steve, I have a 1st mortgage at 7.67% and a second at 12.25% I am not able to refinance because there is no equity in my home at this time plus I had a bankruptsy dicharge a year ago. I also do not qualify for modification because I am and have always been current or ahead in my loan ... Read More »

I Looked Into Living Free and Clear and I’m Confused. – James

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“Dear Steve, My wife and i owe about $20,000. credit cards debt. We have adjustable mortgage that we owe more than the house is worth. We bought the house for $280.000. We owed more than $320,000. The current market value is about $160,000. We would like to pay off our debts sooner. I looked into “Living Free And Clear ” ... Read More »

Would you continue making payments in my situation? – Dan

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Defaulting on 80/20 interest only loan intentionally. Have enough income to make mortgage payments. Home is approximately 100,000 underwater. Entering 6th year of mortgage, nothing towards principle at all. Payments adjust in 4 (2016) years with an increase of 400 dollars. DO NOT qualify for loan remodifications due to sufficient income. No chance of refinancing in the near future. 1ST ... Read More »

Just Thinking About Strategically Defaulting on Your Mortgage? FICO Says They Know Who You Are

FICO FIGURE 1

FICO recently released a study that claims they can pinpoint those who are prime candidates for strategically defaulting on their mortgage. Strategic defaulters can be defined as those able to make their mortgage payments but unwilling to do, often because their mortgage is worth more than their property value. Researchers at FICO have determined an ability to identify borrowers 100 ... Read More »

We Gave Our Home Back in a Strategic Default But Have Some Residual Debt. – Marilyn

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“Dear Steve, My husband and I recently completed a strategic default and we feel very blessed — we are renting a great house at 2/3 what our old mortgage was. Our former home continues to drop in value — it is now for sale for $114,000 (and “valued” at $80,000) — we paid $245,000 with a 10% downpayment. We have ... Read More »

Mortgage Bankers Association Tells People Not to Default, But They Did

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In one of the funniest and ultimate ironies it appears that the Mortgage Bankers Association, who tell consumers they need to keep paying your mortgage and not walk away from their homes, actually strategically defaulted on their own mortgage and walked away. Et tu, Brute. Read More »

I’m Going to Stop Paying My First Mortgage. Should I Stop Paying the Second as Well? – Joe

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“Dear Steve, house is deeply underwater. bought a second home legitimately. i plan on stop paying on the first home. but i have a second mortgage on the first home. should i keep paying it? gmac owns first mortgage ditech owns the 2nd mortgagt on the first home. i plan on stop paying on the first. but i have a ... Read More »

What Options Do I Have to Re-Finance My Condo With Bank of America? – Jason

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“Dear Steve, I bought my condo when the market was high–bought it for $206,000 Feb 2007. Am told it’s only worth $160,000 now. 790 credit, never missed a payment, and have a stable, decent paying job and have no intentions of getting behind on my mortgage. what options do I have to re-finance? My loan is serviced by Bank of ... Read More »

Strategic Defaults: Morally Repugnant or Sensibly Prudent?

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In case you did not see it on the air May 9, 2010 there was a very good piece about strategic defaults, where people make the decision to walk away from their mortgage even though they can afford to make the house payment. Read More »

Before You Walk Away From Your Mortgage, Read This

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Last week I received an email from a desperate couple in Illinois. Here’s the edited version of their note: "My wife and I have been struggling, morally, with what to do. We have two interest-only, adjustable-rate mortgages with two different lenders coming due in May of 2011. I currently can handle paying all my bills–but just barely, with nothing left ... Read More »

What’s Going on With My Second Mortgage? Did They Settle Or Not? – Greg

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“Dear Steve, I owned a home in Arizona but had to move due to a job change. I continued to pay for 2 years in hopes that the market would turn and I could sell it, after which I turned to a short sale to be free of it. The primary bank accepted the sale but the second wanted something ... Read More »

What to Do When You Can’t Pay the Mortgage

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If you’re having trouble making your house payments, the first thing to know is that you are not alone. Home mortgage defaults are at an all-time high across America. This is good news for you, because it means that mortgage lenders are familiar with people in default on their home loans and often have established programs and policies to deal ... Read More »

Is It Time to Walk Away From Your Mortgage in a Strategic Default?

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With homeowners still slipping under the seas of mortgage default more and more are considering that walking away from the mortgage might be a wiser and more logical solution. This approach even has a name, strategic default. A strategic default might be something to strongly consider if you owe more than your home is worth, property values in your area ... Read More »

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