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Strategic default on mortgage.

Resolved Question:

Strategic default on mortgage.
Submitted: 5 years ago.
Category: Legal
Expert:  LegalKnowledge replied 5 years ago.
What is your specific question?
Customer: replied 5 years ago.
How can we do the strategic default? What do we need to do? Since we lost so much money on this house that we don't care. We just want to get out of this mortgage.
Expert:  LegalKnowledge replied 5 years ago.

Do you want to keep the house or not?

Customer: replied 5 years ago.

We don't want to keep the house.

Expert:  LegalKnowledge replied 5 years ago.
If you dont want to keep the home, you are going to need to see if the lender will agree to a short sale or accept a deed in lieu of foreclosure. If they will agree to either, you want to also make sure they will waive any deficiency judgment which they could possible seek. Contact their loss mitigation department and inquire as to these two options. It is possible that the home may need to be put up for sale before either can be considered as they will want to see that there is no interest in the home.
Customer: replied 5 years ago.

We understatnt you don't provide the legal advices however, the question still remains the same. Is it possible for us to do the strategic defualt? We don't want to do a short sale nor foreclosure on our house. Since we were never late on our loan payment, we knew they were not going to work with us. Where do we need to go to get these type of questions answered?

Expert:  LegalKnowledge replied 5 years ago.
What do you mean when you say a "strategic default"? If you do not want to keep the home and do not want to do a short sale, your only option is a deed in lieu of foreclosure and see if the bank will take the home back. If you do into default, the lender will foreclose. Your credit will be effected and you could be liable for a deficiency.
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