West Sacramento Short Sale Information –Strategic Default

Today let’s talk about the pros and cons of a Strategic Default.

What exactly is a Strategic Default you ask? Basically a Strategic Default is when a homeowner truly can afford to make the payment but because the property, be it their principle residence or investment property, is either so far upside down that it will be 10 or more years if ever before the property is worth what they owe or is such a large negative cash flow or both that it just doesn’t make sense to keep the property any longer and allow it to be either foreclosed on or short sale.

A recent survey from Zillow, the on line housing site, stated that 71% of economists and 59% of homeowners who completed the survey said they would never consider Strategic Default even if their property was 40% or more upside down with 37% citing moral issues for their decision.

Now that is an interesting observation but what comes to mind for me is, HOW many of those surveyed really were 40% or more upside down? I ask because it is easy to be an arm chair quarterback and say what you would or wouldn’t do if you are not in that situation. If you are 40% upside down in your mortgage, based on average appreciation, it will take 22 years +/- for that property to get back to what you owe. If it is an investment property and you have negative cash flow on the property after your tax incentives, is that an investment or a hobby? Remember a hobby is something you enjoy and don’t mind paying for. An investment should bring you a positive return on your money at some point.

To Strategically Default is a personal decision that only you can make. In these uncertain times and favorable tax laws it only makes sense to do what is right for you and your family. Who cares what anyone else thinks or says? The only thing that matters right now is what is best for you and your family. The banks will recover – heck they already have.

If you have an underperforming asset or are not sure where to turn, give me a call and we can discuss your options. At least then you will have all the facts you need to make a good business decision that is right for your situation

Is a West Sacramento Short Sale Right for Me?

To get a better idea of when your West Sacramento home will be worth what you owe, log in to www.shortsaleandloanmod.info for a free estimate or call me today for a free no obligation consultation or for the latest West Sacramento short sale information. Call me today and sleep better tonight; you’ll be glad you did