Menlo Park Homeowners Faced with Difficult Decision to Default on Loan

Do you owe far more on your Bay Area home or investment property than it is worth?  Have your payments consistently gone up while the value has gone down? Are you struggling to make the payments?

If the answer to any of these questions is yes, you face a huge choice:  Do you keep paying and hope for the best, or do you “bite the bullet” and intentionally (some say “strategically”) default on your loan so you can move on with your life?

This is a huge decision, and there are many implications:  Moral, legal, financial, credit, etc.  And many questions arise —  If you decide to strategically default, can your lender sue you to cover their losses?  Are there any tax consequences to a default? Will you ever be able to buy another home?  Are there alternatives to walking away?

Strategic default may be the right decision — but if you don’t plan in advance to mitigate the potentially harmful consequences of a strategic default, all you’ll succeed in doing is spreading out the problem for years to come.

We provide information and guidance to people just like you.  If you are in this situation, be sure to call our Menlo Park Real Estate Attorneys for an appointment.  650-422-3313.