What is an Strategic Default? (SD)
The definition for an strategic default is simple. .it is the decision by a borrower to stop making payments defaulting on their mortgage payments despite having the financial ability to make those payments.
This usually occurs after the homeowners suffers a substantial drop in the house's price such that the debt owed is considerably greater than the value of the property.
When this value is expected to remain relativity the same for the foreseeable future, borrowers become “walkaways”
This essentially will end having a mortgage “underwater”
Lets get something clear now:
If you are considering an strategic default on your property but yet, you are borrowing money to meet your bills every single month. .
I got news for you,
That is not an strategic default. .
you should be seeking a Strategic Survival Default (SSD)
. . . .before you drain all your savings and be left with nothing!
Please watch an important video that may give a better perspective. .
and learn how to say those words to your lender. . .