Well first let’s answer the question what is a strategic default? A strategic default is when the homeowner chooses to walk away from the mortgage even though the homeowner is financially able to continue to pay it in most cases because the bank won’t approve the short sale because of the homeowner’s ability to pay the mortgage. For most homeowners this is more of an emotional decision because most of us want to pay our bills on time and in full so this decision becomes a peace of mind decision and deciding whether or not to sleep at night or let it go and take the loss now because you thought of all of your options and you want to take some kind of control back over your life – over your finances and keep it moving.
Please keep in mind if you make that decision in Atlantic County, NJ to walk away from your mortgage know that NJ is a recourse state meaning that if the sale proceeds are not enough to repay the loan, the bank can take further action and get a personal judgment against you for the remainder of the money owed. Keep that in mind while you are making what is an emotionally frustrating decision.