Gurnee foreclosure lawyer The housing market crash of 2008 left many Illinois homeowners “underwater” on their mortgages, owing more than properties were worth. In this situation, some borrowers may consider a “strategic default” – intentionally stopping mortgage payments even if they can afford them. But what exactly is a strategic default, and what are the potential consequences for borrowers? An Illinois lawyer can help you take a closer look at strategic loan defaults and what you need to know.

What is a Strategic Loan Default in Illinois?

A strategic loan default, also known as a strategic default or voluntary foreclosure, is when a borrower deliberately stops making mortgage payments on their home even though they have the financial ability to continue paying. This is typically done when the home’s market value has dropped substantially below the outstanding loan balance, leaving the borrower “underwater” on their mortgage.