A recent Blog reported that Burt Reynolds’ home might be foreclosed by the bank in order to collect on the debt owed. Mr. Reynolds case illustrates the frustration a lot of homeowners are feeling. It is my opinion that the new wave of foreclosures may come from what is called a strategic foreclosure. Basically, a strategic foreclosure is a decision by a homeowner to stop paying for the property even if they possess the economic means to continue to pay for it. The decision is an economic one as the property has lost so much value and the homeowner does not see a reason or way out of the situation. Many homeowners in this situation see making the mortgage payment as throwing good money after bad. This may be the case for Mr. Reynolds, as he may no longer wish to keep a property he believes would not appreciate in value. At the core of these economic decisions emotions are at play and economist looking at only the hard data may miss that population of individuals not willing to throw good money after bad.
http://www.miamiherald.com/2011/08/17/2363782/bank-aims-to-foreclose-on-burt.html
Written by: Hector A. Pena, Esq
Written by: Hector A. Pena, Esq
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