Castle Law Office Blog | Missouri & Illinois Bankruptcy Legal Blog

“Strategic Foreclosures” May Be Putting Missouri and Illinois Homeowners into Unknown Territory

CBS recently reported that with more than 4.5 million homeowners upside down in their mortgages, people are more willing to forego protection from foreclosure and walk away from their homes. They are calling this phenomenon “strategic foreclosures” and it is appearing as a real option for some people. Should it be an option for you?

I would imagine that many of these people have not done their research. Though they are seemingly unconcerned with the effect a foreclosure will have on their credit, they couldn’t possibly be aware of the repercussions. Luckily, you can be aware. If you walk away from your home and think a foreclosure will end your responsibility, you are mistaken. If the house is sold at auction for less than you owe, you will still owe a balance. It is called a deficiency balance and it will be collected by your creditors. That means they can garnish your wages, levy your bank accounts, or go after your other property to get it back.

Before you make a decision like giving up protection from foreclosure, research all of the consequences of your actions. Most St. Louis Missouri and Fairview Heights Illinois bankruptcy attorneys will offer you a free consultation to talk about alternatives to “strategic foreclosure.” The best ones, however, will offer you free information before you even come in. Request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to learn what to look for in an attorney, what your options are for protection from foreclosure, and more.