Many property owners in Florida bought their property during the real estate boom. However, when the real estate market crashed, homeowners became faced with the problem of their mortgages now far exceeding the current market value of the property. This is especially true in Miami-Dade, Broward, and Palm Beach County.
The purchase of your home was likely one of the biggest, if not the biggest, financial and emotional investments you have ever made. Even though you may have emotional attachments to your home, it is a financial investment in the end. If you owe more on your mortgage than your property is worth or you can no longer afford to make mortgage payments, a strategic default, when assisted by an experienced attorney, can be an effective solution. A strategic default basically means that you stop paying your mortgage or walk away from your mortgage. Valdes Law Firm, P.A. will help you evaluate your situation, advise you of your options, and guide you through a strategic default if it is a suitable solution for you. Contact online or by calling (954)764-7878 to schedule your free consultation.
There is a growing trend in Florida, and especially in Miami-Dade, Broward, and Palm Beach Counties, for homeowners to strategically default, or walk away from their mortgage. For many homeowners who are upside down on their mortgage, the decision to strategically default is one that is difficult but, often times, the first step to financial freedom.
The most common reasons for a strategic default are:
- the value of the property has dropped below the total amount owed on the mortgage (usually referred to as “negative equity” or being “underwater”)
- reduction in income or other inability to afford mortgage payments any longer
- need to move to a different city or state
- if it is an investment property, either the property has become difficult to rent or rental income is not sufficient
- the property needs major repairs that you either cannot afford or cannot be justified because the property is worth less than the total amount owed on the mortgage
Regardless of your reasons for considering a strategic default, Valdes Law Firm, P.A. can evaluate your situation and advise you of both the benefits and risks of a strategic default. We can help you calculate whether it makes financial sense to continue paying your underwater mortgage and evaluate various options to get rid of your underwater property, including defending a foreclosure action, completing a short sale, executing a deed in lieu of foreclosure, and many more. We will help you decide which path is best for you based on an in depth review of your particular situation. There is no “one size fits all” solution, and Valdes Law Firm, P.A. is dedicated to finding a solution that works best for you and your family.
If you are considering walking away from your mortgage, either because it no longer makes financial sense for you to continue paying for a property that is underwater, or because you can no longer afford to pay your mortgage, contact us online or by calling (954)764-7878 to schedule your free consultation today. Hablamos español.