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July 12, 2011

Strategic Foreclosure

"Strategic foreclosure" is the newest phrase circulating throughout the media. It refers to homeowners who elect to walk away from their underwater mortgage even if they can afford payments. As property values continue to decline, experts predict many homeowners will elect to walk away.

The problem with strategic foreclosure is walking away does not give homeowners immunity from paying their mortgage. In fact, those who engage in this strategy could end up owing money on property they no longer own.

Real Estate Investing article on "Strategic Foreclosure "