When working to resolve mortgage debts there are plenty of people handing out opinions on how to go about the process. Like most things, these opinions come in many forms and varieties making it hard for homeowners to come to a decision about their mortgage loans. While there is no one answer out there for everyone, there is a few things we can eliminate from the list of possible solutions.
No Payment ?
It is becoming fairly common for mortgage modification companies or short sale experts to recommend that homeowners purposely default on their loan before entering negotiations. In short, this is never an adequate option or a solution to your mortgage debt troubles.
The reason is that lenders are less flexible when it comes to offering a solution when a borrower has defaulted on the loan. Missing a mortgage payment sends one message to the lender “I am not responsible enough to maintain my payments or make an effort to resolve my debts early on”. While this may not necessarily be true of your situation, lenders are likely to look at you through this lens from then on.
Strategic default, as it is often called, is not a good way to start of mortgage debt negotiations. While it is important to prove financial hardship in order to secure a loan modification or short sale approval, getting in touch with your lender before you miss a payment improves your chances of successfully negotiating a deal.