What are strategic seizure?
Strategic seizure is slightly different from standard seizures in which the person loses his home because of the inability to pay a mortgage. In this type, the owner deliberately leaves the house and stops the mortgage installments, although he is financially able to pay. This is often done because of the loss of the house or inability to sell the house. Although strategic seizure is often performed on the basis of the assumption that this is a financially healthy possibility in the long run, this decision may have catastrophic effects on the financial future of man.
When the house owner decides to stop paying a mortgage to lose his home intentionally, he is known as the strategic closure of the market. Depending on the type of mortgage and local laws, the person may be able to skip three to six months of mortgage repayments before being closed into the market. From now on, he can be able to stay in the house for several months after entering the closure of closure before the creditor will return to the house.
There are several reasons why people decide to close strategic seizure. The most common reason is when the home loses a significant part of its value. Often, when a person's home evaluates in less than the remaining mortgage, the monthly mortgage payments may seem unnecessary. This is particularly common if the person does not intend to stay in the house for a period of time to repay the mortgage, and eventually ends up creditor money when the house is later sold. Leaving the house and potentially having a forgiven debt is a common reason why people enter strategic seizure.
Sometimes one can enter the strategic closure of the market if it no longer lives in the home but has problems with sale. Rather than performing a monthly mortgage, it may decide to simply leave the debt and store this mortgage at living costs or savings. This usually happens when the owners cannot or do not want to rent a house in which they no longer live.
The vast majority of people who deliberately lose their home do so, because they believe it makes more financial meaning in the long run. Depending on the laws in the jurisdiction in which the person lives, the market closure may be forgiven, although it is likely to remain in their credit report for a certain period of time. When it comes to a human law, the only real argument against strategic seizure is moral - the person must decide whether the failure to complete the legal agreement in the future is worth a financial advantage. In spite of this, it is possible in most jurisdictions for the creditor to request that the person who left his home still returns part or all the remaining mortgage. This, added to the serious harmful effects that may have strategic seizure on people's loan and therefore the ability to make large purchases or borrow money in the future, this type of closure can easily less than strategic.