Forclosure Defaults and Bankruptcy go Hand-in-Hand
More and more often these days, we are hearing about foreclosure defaults in the housing market. Such defaults occur typically when a borrower with perfect credit and ability to afford the mortgage, makes the intentional financial decision to let a home foreclose back to the lender. Such defaults are generally triggered by massive amounts of negative equity. Yet while a credit score may suffer from such defaults, the upside for such debtors is generally much more beneficial than the downside. Such strategic defaults are now spilling over into the Bankruptcy arena. Let’s face it. Maintaining a home valued at $250,000 with a debt of $600,000 makes no economic sense whatsoever.