Strategic Defaults at the Higher End
April 28, 2011
Strategic Defaults….What Are They?
A strategic default is when you bought your home:
- The property value has drop dramatically
- You can still afford the payments, You may choose to keep up your payments but do a short sale.
- You let the home go back to the bank or you Short Sale. The Short sale You keep your credit score higher than if you allow for a foreclosure..
Should I Short Sale My Home? When Can I Buy Another home?
Let say this is your primary residence, You like the neighborhood, but you find that you can buy the same home for near half the price next door or around the corner. How do you do this effectively.
- Keep making the payments
- Short Sale your home.
- You may need to chip in about 10 percent of the difference of the loss to the bank to get the bank to accept your sale price.
- You Sell the home
- Buy the one in your neighborhood while doing the short sale.
Does this work??? in many cases yes.
Why do people do this…because they look at their home as an investment and if the investment is bad they cut their loses. Then they reinvest somewhere else.
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