What is a strategic foreclosure?
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What is a strategic foreclosure?
Asked on August 5, 2012 under Real Estate Law, Texas
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Well, if your house is underwater and you owe more than it is worth, many people walk away from the house as a "strategy" figuring it is better to rent than to keep conrtibuting to an underwater loan. But the results are the results in foreclosure: listed the same on your credit report for 7 years with bad credit. So it may be best to take advantage of the many deals for home owners that are out there or to give the lendler a deed in lieu of foreclosure and have the waive the deficiency (the amount left over on the loan after the house sells). Good luck.
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