Strategic Default, Modification, And Foreclosure

Is strategic default an intelligent approach or a reckless gamble? It's all about what you're willing to risk, and how smart you approach it. The stakes are high, so seek immediate and experienced legal help from the attorneys at the Law Offices of Neil Crane.

What is Strategic Default?

Strategic default is a process whereby the borrower purposely misses payments in order to get the the bank's or mortgage servicer's attention. This is done in hopes that the lender will wake up and alter the terms of the mortgage, usually by lowering the interest rate and the corresponding monthly payment.

Strategic Default - The Risks

The risks are significantly high - It could cost you the family home as your default falls on deaf or often incompetent ears and your home moves into foreclosure. Thousands of homes lost in America every week started with a so-called strategic default. With the risks so high, the rewards need to be extreme also. How big a chance do you want to take? How big a change do you need? Taxes and insurance aren't adjustable, and some mortgages are actually at fairly low rates already. We all want a lower payment, but what's the amount you need? Is it likely? Is it necessary? Is it worth the risk? The modification process isn't in the national news for its efficiency or its effectiveness. Don't ever try strategic default on your own. At the Law Offices of Neil Crane, we always learn the risks and rewards of any financial decisions and prepare fully before taking any steps on your behalf. We've saved thousands of homes in our over thirty years of practice. Call us to see how we can help you save yours. We can be reached at 203-230-2233 or toll free at 1-888-249-3027.

Strategic Default - What You Should Know Beforehand

  1. Understand the risks involved before any purposeful/strategic default. You have one home; banks and servicers have millions of loans. They don't have the concern, interest, resources or motivation to alter these loans in your favor. They get paid whether you succeed or not.
  2. Know the exact amount of modification you need to change your financial life. How big an adjustment is needed to make or break your monthly budget? You are risking your house for how much per month?
  3. Understand the rest of your budget. Are there other, better spots to adjust your finances that don't involve the mercy of a bank granting you a mortgage modification? Do you have a second mortgage? Do you have credit card debt? Make sure strategic default is the right place to start by fully comprehending your entire monthly budget with an experienced professional long before you make any move to modify your mortgage.
  4. Never default on a house you're not prepared to lose. It's a gamble and no gambler should ever wager more than they can afford to lose. Most mortgage defaults - strategic or otherwise - end in foreclosure, so understand the size of your bet.
  5. Save your missed payments. If you don't pay the bank and you don't save the money, you're practicing for homelessness. Strategic default with no savings isn't a strategy, it's a reckless endeavor that eventually becomes begging for mercy from often merciless lenders. Not saving missed mortgage payments is the most common mistake made by homeowners seeking modification.


If there is nowhere else to cut in your budget and you'll lose your home without a modification (1) get the advice of an experienced professional you can meet with face to face; (2) spend the time to fully analyze your budget today and in the future; (3) understand the exact change you need; and (4) save every missed payment.

Strategic Default is a Gamble! It's winner takes all so know the game, know the players, do the math and get solid experienced professional help long before you place your bet.

Contact Our Connecticut Strategic Default Lawyers
We offer a free initial consultation. Call us today at 203-230-2233 or toll free at 888-249-3027, or complete our online contact form. When you call us, you will always speak to an attorney. We do not use voicemail. We are committed to protecting your consumer rights.

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