This would have seemed like a strange question even 5 years ago. But I talk to people on a regular basis who are asking that question – “Should I pay my mortgage?” – even some who have the short-term ability to do it. Florida is one of the highest ranking states in “strategic defaults,” i.e., intentional defaults where the homeowner stops paying even though they can afford it (at least by someone else’s analysis). In these economic times, there are a number of factors to consider. A helpful article on the issue appeared recently in the Wall Street Journal. The authors suggest these factors to consider:
· Am I willing to rent for at least 3 to 5 years while waiting to qualify for a home loan again?
· Can I accept a blot on my credit record for seven years, one likely to make any loan I need more expensive?
· Am I willing to take the risk that my lender will continue to dun me for the balance owed on the mortgage after the foreclosure process is completed?
· How much can I save by renting, taking into account the tax deduction I get for mortgage interest and real estate taxes?
· Do I have a moral responsibility to keep my legal financial commitments?
· What will be the effect of a foreclosure on my neighbors and community?
Click here to be directed to the full article in the WSJ.
If you need advice or assistance with a loan modification, short sale, or foreclosure defense, we at Aman Law Firm can help. Just give our office a call and schedule a consultation.