Strategic Default: Acting in Your Own Best Interest

The Forrest Law Firm Strategic Default Plan®

Banks, loan servicers and the federal government do not want you to walk away from your mortgage. It is not in their best interest. They are not on your side.

Don’t believe me? Then believe Brent White, law professor at the University of Arizona. Professor White wrote a controversial academic paper concluding that banks and the federal government exploit your sense of shame and remorse to keep you from defaulting on your mortgage. He says more people should be defaulting on their home loans.

“You won’t find a time in history where this many Americans were underwater on their mortgage. You won’t find a time where this many people’s homes are worth half of what they paid for their homes. These are unique times, and things are different,” said Professor White.

Do you think banks feel remorse when they make financial decisions based solely on their financial interest? Think again. Lenders make decisions to walk away from bad financial situations all the time. Morgan Stanley walked away from five San Francisco office buildings they bought at the height of the real estate boom.

But the banks don’t want you to follow in their footsteps. They stand to lose huge amounts of money. So does the federal government. The U.S. government owns millions of mortgage through Fannie Mae and Freddie Mac, the government sponsored entities that buy up mortgages from loan origiantors. Fannie Mae and Freddie Mac have also received billions of dollar in taxpayer bailouts, and some experts predict that they may ultimately require up to $1 trillion in taxpayer assistance. The Federal Housing Administration insures millions more residential home loans. If you’ve ever wondered why the federal government doesn’t do more to help American homeowners, this may be the reason.

It has been estimated that it would cost about $745 billion to restore all underwater homeowners to positive equity. That’s only a little more than the first round of bailout money given to the big banks in the TARP program.

Are you getting angry yet? I’ll show you how to fight back.

Call The Forrest Law Firm today at 1-800-915-3923 for an informative and comprehensive consultation on how The Forrest Law Firm Strategic Default Plan® can help you.