Strategic Defaults - What Happens If You Just Walk Away From Your Mortgage?

San Diego, CA (PRWEB) July 05, 2011

A new article by San Diego attorney Robert J. Mintz of the Asset Protection Law Center, examines the legal and practical consequences of a “strategic default” by a property owner. Approximately 11 million homeowners, representing 28% of all mortgaged properties, have negative equity in their home, according to the real estate website Zillow. When a comparable property can be purchased or leased at a substantially lower monthly cost, it’s reasonable to expect that many or most property owners will choose the strategic default option and “walk away” from their property and their mortgage loan.

But what happens to a homeowner who has some other savings tucked away? Maybe there is some retirement or education savings or a summer vacation home. For those who still have some remaining savings, what are the consequences of a strategic default?

•     What will the lender do if I default on my loan?
•     Will I lose all my other assets?”
•     Is there any way to protect my savings from a loan default?

In the July 2011 issue of the Asset Protection Newsletter, Mr. Mintz answers these questions and details the legal consequences of a strategic default. A complete copy of the article and the latest issue of the Asset Protection Newsletter can be found at Strategic Defaults

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