Help me default on my mortgage.
March 4, 2010 10:44 PM Subscribe
I need practical (not moral) advice about strategically defaulting on a mortgage.
posted by anonymous to Work & Money (8 answers total) 5 users marked this as a favorite
I am considering a "strategic default" on my mortgage. I live in a non-recourse state. I've concluded that a hit to my credit score is far preferable to wiping out my 401K, racking up more credit card debt, and then likely defaulting anyway in the future under more desperate circumstances. I don't have nearly the income that I did when I "bought" the house, and won't for the foreseeable future. I've lined up a new place to live that's much cheaper, and don't desire to keep the house via refinancing or other means. What should I know that can help the process go more smoothly? What, if anything, should I be communicating to my bank? So far, I've missed just one payment. (By the way, I am convinced by the work of Brent White that this is not a moral issue, and while accusations of being a deadbeat go along with the package, I'm hoping for a minimum of those in reply to this question.)