Chicago based financial expert, Joe Aldeguer, cites Strategic Default as a viable option for gracefully taking control of a situation that no one saw coming.
Chicago businessman Joe Aldeguer has decades of experience in the real estate and financial services fields. He has weathered both good times and bad, and knows that sometimes walking away from a bad situation is the best route for homeowners sinking under debt. There is, however, an unfortunate stigma associated with cancelling a contract related to a person’s home, says Joe Aldeguer.
Sadly, laments Joe Aldeguer, there are many feelings of shame that swirl around the idea of walking away from a mortgage. Joe Aldeguer has noticed an increase in those feelings in the years since the real estate bubble busted wide open – not just in his native Chicago, but nationwide. There is no shame in defaulting on a contract, says Joe Aldeguer, as the mortgage companies very clearly make provisions in the original contract allowing a homeowner to exercise that right.
The steps and timeline of Strategic Default – an intentional failure to continue paying a mortgage – vary from state to state so, as Joe Aldeguer reminds his clients, it is imperative to seek the advice of a professional in the field. For a homeowner, having someone remind them that this is merely a business decision can also make the process quite a bit easier to deal with emotionally, notes Joe Aldeguer.
Essentially, points out Joe Aldeguer, when a homeowner must choose between the daily value of life for their family, and making payments on a property whose value will never equalize with its note, it is time for action. Joe Aldeguer often asks guests in his Chicago office why they would want to keep paying on an item that will never achieve a positive Return on Investment. It makes much better personal economic sense to save the money being spent on a mortgage and move on – the banks will get their money somehow, and the homeowner will be able to better provide for his or her family.
Joe Aldeguer understands the reluctance of many homeowners to even consider a Strategic Default. It is very difficult, says Joe Aldeguer, to let go of the American dream of homeownership, even if it completely goes against a person’s gut instinct. The fact of the matter, cites Joe Aldeguer, is that the dream has now become a nightmare for those people who trusted that real estate was an absolutely safe investment.
Real estate in Chicago, as well as the rest of the country, says Joe Aldeguer, has never seen such a dramatic decline in value. While it is true that after a default it may be necessary to rent for a while, eventually another home purchase is possible. Real estate is still considered a good investment, and as home values in Chicago stabilize, so too will the financial situations of those facing a default.
Joe Aldeguer may be reached at his Chicago based homeowner advocacy firm at 312-945-8105.