Daily Investment Tips

Mortgage owners who cant keep up with monthly payments are making a drastic decision by walking away from their mortgages. Mortgage companies refer to it as strategic default.

Walking away from a mortgage can be in your own best financial interest, after all big real estate companies do this every day. But before you make that decision make sure you are familiar with your states rules on mortgage defaults. Some states are pro borrowers while others are pro lenders.

Some Risks and Cost associated with walking away from a mortgage

1. In certain states, a borrower can be sued and personal assets can be subject to a deficiency judgment.
2. Once a mortgage goes into default, a borrower’s credit rating is severely tarnished, making it more expensive, if not impossible, to qualify for any new form of credit.
3. anything that involves a credit review, such as obtaining auto insurance or getting a new job, can be complicated.

Before you make the decision to walk away from your mortgage consider the above cost. Everything in life has risk

written by Constantine Njeru \\ tags: Auto Insurance, Borrowers, Credit Rating, Deficiency Judgment, Drastic Decision, Financial Interest, Insurance, Lenders, Mortgage Companies, Mortgage Defaults, Mortgage Mortgage, Mortgages, New Job, Personal Assets, Real Estate Companies, Risk