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Strategic default a tough decision for underwater Miami homeowners

A staggering number of homeowners consider strategic default each month as nearly 1 in 4 owe more on their homes than they are worth, the Huffington Post reports.

Consulting a Miami foreclosure defense attorney is the best course of action when dealing with an underwater mortgage in South Florida, or when considering strategic default or trying to stop foreclosure in Miami.

As we continue to report on our Miami Foreclosure Lawyer Blog, the unfair, unethical and illegal practices of banks are finally coming back to haunt them. Homeowners can negotiate from a position of strength, whether it’s seeking to stop foreclosure or a move to reclaim your property or win a monetary settlement.

Dealing with a deficiency judgment is one possible outcome of strategic default. Consulting an experienced real estate lawyer in Miami is the best course of action when considering your options.

Nearly 11 million homeowners are dealing with an upside down mortgage. Still, many resist walking away from a home — which would be a logical financial decision — out of fear, shame, courage or morality. If only banks operated under the same ethical code, the real estate market would never have suffered a catastrophic collapse.

The Huffington Post followed 48 people who made that tough decision. After a year, only 8 are still paying their mortgage. While almost all of them took personal responsibility, most were also frustrated by banks that routinely lost paperwork and showed little interest in reaching a compromise.

Some spent years trying to get a decent modification or arrive at a deal for a workable short sale. Most were universally frustrated by banks at every turn. Many banks used the threat of a ruined credit score to bludgeon their so-called “customers” into submission. One homeowner said his credit score dropped less than 100 points — a hit, to be sure, but still salvageable.

Many have lived in their homes rent free for a year or more while the banks foreclosed. Others, not realizing that was an option, have moved out. Most get gigantic bills in the mail from banks and mortgage companies — even after being forced to walk away because those same banks refused to meet them in the middle.

More than one pointed out that it’s as if the banks still don’t get it after all this time. One bank suggested a couple apply for a modification — they had been doing so for a year. They applied anyway and were rejected.

If you need help with foreclosure issues in Miami or the surrounding areas, including short sales, deficiency judgments, strategic defaults or other help for Miami homeowners, contact Jacobs Legal for a confidential appointment to discuss your rights. Call (305) 358-7991.

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