The term "Strategic Walk-a-ways" is the phrase used for owners that walk away from their mortgage when they still have the financial ability to pay. When owners walk away from their mortgage, banks are obligated to pursue foreclosure. Recent laws now require lenders to make a documented effort to work with owners in an effort to avoid foreclosure proceedings.
I have personally counseled owners about avoiding foreclosure for the reasons listed in the following article. Any efforts made by an owner to work with their lender through loan modification or short sale will go a long way in an effort of working in good faith. The truth is, the longer that the housing crisis continues to be flooded with foreclosures, the longer that the financial downward spiral will continue without a foreseeable end.
4 dangers of walking away from your mortgage
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