Underwater Mortgage and it’s Consequences

Lots of homeowners are just walking away from their mortgage loan because of its very high interest rate. Foreclosure whether it is voluntary or not is still unacceptable for homeowners as they watch their precious home fall below its market value. It is very sad to know that your precious home you bought for a very high price is slowly decreasing its market value.

Homeowners who are defaulting on their mortgage loan is called “strategic default” may seem practical, but this can bring huge consequences. Having your home in voluntary default is not the best option for all underwater homeowner who can still afford to pay for their mortgage payment.

There are lots of factors you need to consider such as which state you live in. Usually, lenders do not go after people who have forced into foreclosure. However, some states such as Florida, they have 5 years to do so. There are homeowners who choose to file for bankruptcy after their foreclosure, because this can wipe out their deficiency. In Utah, homeowners walk away from their mortgage should file bankruptcy to make sure that any deficiency will be eliminated.

Read more: http://www.foreclosuredataonline.com/blog/mortgage-foreclosure/underwater-mortgage-consequences/