I read a blog post today by Teresa Boardman on the Inman Daily News (PM Edition) titled, " Would You Walk Away". In a nutshell, Ms. Boardman spoke about a young man who purchased a home with his fiancee who eventually walked out on him....and her mortgage obligations. This young man struggled to make the mortgage payments and contacted his mortgage company repeatedly attempting to get a loan modification, but to no avail. He was told that since his payments were current, he didn't qualify for a modification. He found a roommate who refused to uphold his end of the bargain and pay the rent on time and eventually left. The young man struggled with other creditors and eventually his credit rating dropped because of late and delinquent payments. Eventually, he fell two months behind on his mortgage payments and again contacted the bank for help, but was informed that help was only available for those who are current on their mortgage payments.
Ms. Boardman goes on to speak about the young man's option of just simply walking away from the home and the terrible ramifications to his credit. Now don't misunderstand me, situations like this happen in every nook and cranny of our country and it has devastating consequences to a homeowner and family. However, this blog made me think of our mission as short sale specialists. This is the reason why we devote our careers to assisting homeowners in despair. It's clear that Ms. Boardman is emotionally attached to this young man's plight. I mean, who wouldn't be? It's also clear that there is so much that Ms. Boardman can do to help alleviate this young man's situation that wouldn't involve the "F" word. A strategic default to a homeowner in distress may seem like a viable solution, but the after effects are lingering and real. I really don't understand why it's called a strategic default in the first place...there's no real strategy after the default.