Strategic default is a calculated move in which a home owner stops making the mortgage payments, often when they can still afford them, because their home is now worth far less than what they owe on it. For more expensive homes, banks are slower to file foreclosure. Strategic default is not always in the best interests of a homeowner. If you are considering strategic default, contact a Jacksonville foreclosure lawyer first. The priciest property to be foreclosed upon since 2009 in Jacksonville recently sold for one and a half million dollars, which is nearly half of its market value. In fact, through out the nation more expensive homes are going into foreclosure at an astonishingly high rate. In fact, one in ever seven homeowners who owe over one million dollars on their mortgage is several months behind on mortgage payments. For mortgages under one million, only one in twelve Americans are in default. When the housing market crashed, owners of luxury houses found they were making large mortgage payments on homes that were now worth far less. Seeing this as a poor investment, many rich homeowners have just stopped making their payments. The high property taxes and the money the banks must spend to maintain expensive homes means banks are much slower to foreclose on the properties. On top of that, a slow housing market means selling higher end is nearly impossible. Few people can purchase a home with cash, and trying to get a home loan for a million dollars is difficult as well. The rich are not the only ones strategically defaulting. Experts believe there is a huge number of homes that have not been foreclosed on yet. When banks seize properties, they become responsible for paying the property taxes. The house must also be kept in good repair or it will be worth nothing when the bank tries to sell it. With property prices so low, selling the house on the current market means the bank will lose money. The added cost to the bank means that there is an inventory of homes that will soon reach foreclosure that the banks are choosing to ignore for the moment. At the end of 2010, 1 in every 6 homes in Florida stood empty and nearly 25 percent of Florida homeowners are behind on their mortgages. If you are in that 25 percent, contact a Jacksonville foreclosure lawyer who can explain what options you have. While the housing market is starting to stabilize, many Florida home owners are still suffering financially. Florida relies heavily on tourism traffic to support itself. With the rest of the nation struggling financially they are staying closer to home, which leaves Florida with less money flowing in. Florida has been hit particularly hard by the recent recession. If you are having trouble making ends meet, contact a Jacksonville foreclosure lawyer. Even if you do not think you are going to be foreclosed on, a Jacksonville foreclosure lawyer may be able to help you save money through refinancing or loan modifications that could lower your mortgage payments. Links: More Expensive Houses Entering Foreclosures, by Send2PressNewsWire, April 19th 2011
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