For People Who Are Considering Walking Away From Their Homes
When the real estate market takes a turn for the worse, many people can find themselves in a situation where they owe more on their home than it would be worth if they tried to sell it. Rather than continue to pay on an asset that might take several years to recover its value, some homeowners choose the option of what is known as a "strategic default."
Strategic default refers to a situation where the homeowner chooses to quit making payments on the mortgage even though he or she is financially able to do so. These are voluntary decisions, and home mortgage defaults are not looked upon kindly by lenders. There are a number of issues you should consider before deciding on a strategic default, and it is important that you understand the advantages and disadvantages.
Walton Legal Services: More than 30 years | More than 30,000 bankruptcies filed
Understanding Indiana Law Regarding Strategic Mortgage Defaults
At Walton Legal Services, our Indianapolis strategic default attorneys can give you sound advice and help you understand the pros and cons associated with these types of decisions. We will take the time to review your unique circumstances, answer any questions you might have and explain any alternatives that may be beneficial for you.
Once you have stopped making payments on your mortgage, the bank will eventually foreclose on the property. The foreclosure can remain on your credit report for up to seven years. Under Indiana law, if your lender is not able to recover the full amount owed on your property through the foreclosure sale, it can pursue legal action against you to collect the difference. Lenders are often able to build very strong cases in instances where the property owner had the ability to make the mortgage payments and chose not to make them.
Discuss Your Strategic Default Questions With One of Our Attorneys
If you are looking for an Indianapolis lawyer to help you understand your rights and options regarding strategic defaults, call one of our Indianapolis law offices, call our Columbus, Indiana, office or contact us online. We offer free initial consultations, and we give you detailed up-front information about our fee arrangements, so there will be no surprises.
We are a debt relief agency. We have helped more than 30,000 people file for bankruptcy relief under the Bankruptcy Code.
