“Strategic Defaults” on your Mortgage

Orlando Bankruptcy Attorney

In a declining real estate market, many Florida homeowners are finding that they owe more on their mortgages than the house is worth. In some cases, the homeowners will choose to stop making payments on the house even though they have the financial wherewithal to make them. This is referred to as a “strategic default” on a mortgage.

Strategic defaults are voluntary. Homeowners sometimes choose to walk away from their home and its mortgage because they decide that it doesn’t make financial sense to continue making payments on a house that isn’t worth what they owe on it. There are a number of important considerations that go into making this type of decision and it is important that people looking at a strategic default understand the pros and cons.

What You Should Know About Strategic Defaults

At the Price Law Firm, our lawyers represent clients throughout central Florida in a variety of complex bankruptcy and foreclosure matters. We invite you to contact us for a free consultation about the benefits and drawbacks of a strategic default. We can also advise you of your options before, during and after the default.

Under Florida law, if the bank forecloses on your home and is not able to sell it for the full amount due, the defaulting homeowner can be held liable for any deficiency between the sale price and the amount owed. As unsecured debt, we may be able to help you eliminate it through a Chapter 7 bankruptcy if you qualify.

To learn more about your options if you are under water on your mortgage, contact the Price Law Firm. We are conveniently located in Altamonte Springs in the Orlando-Kissimmee metro area. To schedule a free consultation with an attorney, call 407-834-0090.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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