Strategic default expert Paul Stevenson, creator of the acclaimed Strategic Mortgage Default System, has stated that the much-discussed trend of homeowners choosing to walk away from their mortgages, even if they are still able to make the payments, is far from over.
Online PR News – 10-December-2010 – – strategic default expert Paul Stevenson, creator of the acclaimed Strategic Mortgage Default System, http://www.strategicloandefault.com , has recently announced his view that the phenomenon of homeowners choosing to walk away from their mortgages, even when they have the ability to pay, is far from over.
Mr. Stevenson stated that, while many voices in the media and the government would have Americans believe that the worst is behind us for the real estate market, this is almost definitely not the case.
“The combination of continued job losses, tremendous declines in real estate prices, and the increased backlog in the housing market due to the recent foreclosure processing scandals, tell the real story,” said Mr. Stevenson. “Housing prices are not going to rebound any time soon.”
According to recent research by Fitch Ratings, the shadow inventory of delinquent loans, foreclosures, and bank-owned properties has ballooned to 7 million, which would take more than 3 years to clear. Fitch believes that this growing number will trigger further price declines and prolong the already extended real estate crisis.
Mr. Stevenson went on to state, “Don’t be fooled by news about loan modifications improving the situation. The majority of modified loans have re-defaulted within a year. Government programs are not solving the problem.”
Mr. Stevenson believes that the longer the real estate crisis drags on, the more underwater homeowners who have the means to continue paying their mortgages will make the financial decision to walk away in a strategic default – which will in turn prolong the price contraction for years.
“At a certain point, even those who have been hesitant to choose strategic default for ‘moral reasons,’ or to protect their credit scores, will no longer be able to deny that walking away is in their financial best interests,” said Mr. Stevenson.
He continued, “Strategic default is a financial decision, not a moral one, and it’s the right decision for many underwater homeowners.”
Mr. Stevenson noted that, even with strategic default so popular, it is not a simple open and shut process, stating “There are important questions that an underwater borrower must address before deciding that strategic default is the right move. Even if you currently think you will never choose strategic default, it is best to be prepared in advance with the knowledge you need. In my Strategic Mortgage Default System, I guide you through the process of evaluating the risks and rewards of strategic default for your particular situation.”
Paul Stevenson created the Strategic Mortgage Default System after going through the struggle of successfully disposing of two underwater mortgages himself, without losing his other assets, and becoming an expert on strategic default in the process. He recognized that there had been nowhere for him to turn to find a clear, concise, comprehensive description of the strategic default process, and thus decided to create a system to help fellow distressed homeowners avoid the pitfalls that he encountered.
For more information on Paul Stevenson and the Strategic Mortgage Default System, please visit Mr. Stevenson’s website below.