(Source: Idaho Mountain Express By Tony Evans) – Missing mortgage payments and going into foreclosure was once considered a worst-case scenario for homeowners. They could lose accumulated home equity and have their credit scores wrecked for years as a result.But since the real estate bubble burst three years ago, some homeowners going into default find it to be a first step toward renegotiating loan terms with banks. Others could be making “strategic defaults” in order to set the process in motion.

Defaults can lead to better payment terms or a bank-approved short sale. They can also lead to outright foreclosure and eviction. But with real estate values dropping and jobs scarce, some homeowners have nothing left to lose.

Source: Idaho Mountain Express By Tony Evans

Friday, July 1, 2011

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