It has been five years since the housing market first began to crash and with many middle and working-class Americans still facing foreclosure; it may come as a surprise to know they’re not alone. Over 36,000 homes valued at $1,000,000 or more have been foreclosed on in 2011 alone. While this accounts for less than 2% of the foreclosures nationwide, it represents a historically huge increase in “upper class” foreclosures. Until recently, many high-end homeowners were able to postpone or avoid the foreclosure process. This is because they had the means to either pay up or come up with other alternatives. Unfortunately, many Floridians that used to earn high incomes no longer have the financial means to hold out against default.
With the recovery of the housing market still years away, many high-end homeowners have taken a different approach to their foreclosure woes. This approach has been identified as a “strategic default” or “foreclosure defense.”
Paying on a loan that exceeds the value of the home securing it makes little sense from the pragmatic perspective of an investor. Most of these homeowners view their current mortgage as just that; an investment gone bad. Using the strategic default approach affords many borrowers the opportunity to withhold their mortgage payments. That is for as long as it takes for the bank to prove their case and complete the foreclosure action. This provides the borrowers the chance to save money and prepare for the eventual move that will take place.
A foreclosure defense attorney can provide the necessary planning and support to provide as much time as possible in the home. Loan Modification, Deed in Lieu of Foreclosure, Short Sale, and Bankruptcy; these are options that should be considered; in light of the individual borrower’s goals and circumstances.
If you have questions about foreclosure, loan modification, bankruptcy, or other alternatives; please feel free to call my office at 954-484-9987. Or, send an e-mail to emil@fleysherlaw.com, or complete the contact form below.
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