Strategic Default Attorney in Wichita

Understanding Strategic Defaults

Unfortunately, due to recent economic trends many homeowners and investors have lost significant amounts of money on their homes and properties due to a drastic downward change in the value of their property. Many of these cases result in such a severe loss of value that the amount owed on the property or home is actually significantly less than the actual value of the home itself.

In this kind of situation it is vital to retain as little loss as possible to avoid putting hard-earned money into a property that will likely never return the value. When you find yourself in this kind of situation it may seem like you have no way out of losing your money, and that you'll be forced to spend your money on a property that is not worth the value you are paying.

What Is Strategic Default?

There are some strategies however, that you can utilize to avoid losing your money, and begin anew with a property that is worth the value you are paying. One of the most commonly utilized techniques for avoiding this kind of monetary pitfall is known as a strategic default, in which the homeowner purposefully stops paying the mortgage owed on a property despite still having the economic means to make the payment on the property.

Defaulting on your mortgage for the purpose of cutting your losses and starting fresh with a new property can be an excellent way to prevent a further loss of money. In certain circumstances it can prevent you from accumulating debt caused by the lost value, and may be the best solution for your financial situation.

Strategic defaults require careful planning; you have to ensure that your assets are protected and that you have a plan to restore your credit rating following the hit to your credit.

HOW OUR WICHITA ATTORNEY FOR STRATEGIC DEFAULTS CAN HELP

Planning to utilize a strategic default can be a complex process. It is highly recommended that you contact a professional Kansas bankruptcy attorney to guide you through the process to ensure your assets are protected and that you are legally covered in the process.

The legal team at the Kansas Bankruptcy Center can assist you with your strategic default by reviewing your financial options as well as helping you formulate a plan to recover from the mark on your credit history.