Denver, Co. - Over the last few weeks, I have come in contact with home owners that have recently filed bankruptcy and included their homes in the BK courts.That part is NOT unusual, but what comes to the front of our conversation is the question of, "Does it make sense for me to let my house go into foreclosure to eliminate the high debt on my credit?"
Click here to discover how other sellers successfully did a short sale and avoided foreclosure.
Wow, is something in the air? After further discussion, we discover that the home loans were current during the BK 7, and NOW they want to let it go into foreclosure and live in it free for 8-10 months.
They know that the banks / lenders / investors cannot take recourse on them for the debt and any deficiency if it becomes a bank owned. In Colorado, it is a recourse state. Hmmm... makes me think that they were advised to do some kind of "strategic defaulting".
Their BK Attorneys had advised them that they can live their free until the house forecloses. Interesting strategy!
Of course, my question to them is, "Why let it foreclose on you, when you could perform a short sale, and not IMPACT your credit, as much?" Their response was very similar to each other. "We never thought about that, but now I do not have to work with home buyers." Yikes, I do not like hearing that!
I know that our investors, like FannieMae and FreddieMac, take a strong stance on those that have foreclosure on their credit, as well as some lenders. Even taking the same stance on someone that performed a short sale (short pay-off) on their credit.
YET, I do know that those who review credit for OTHER things outside of home loans, i.e.: job applicants, credit cards, car loans, etc... will impact the borrowers' ability to obtain those things with foreclosure on the credit. They have NOT impacted the short pay-off in the same manner!
What are your thoughts about this type of "strategic defaulting"?
Thinking about a Denver Short Sale?
I can help you short sale your property and never pay the bank another penny. Send me an e-mail at denverforeclosureblog@gmail.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 303-521-0984
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
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Thanks for reading this, Dan Hopper.
View My homes for sale at www.danhopper.com.
Dan Hopper specializes in loan modification assistance and short sales in Denver, Colorado. Denver Loan Modification Help, Denver Short Sales. Denver Realtor. Westminster, CO Loan Modification Help, Westminster, CO Short Sales, and Westminster Realtor.
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Important Notice
Dan Hopper, Remax Alliance, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why?
Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.
However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.
We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.
This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.
You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.
The views expressed here are Dan Hopper's personal views and do not reflect the views of RE/MAX Alliance.
This information on Stop Foreclosure: Does a Bankruptcy Assist in Strategic Defaulting?, is provided as a courtesy to our viewers to help them make informed decisions.
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