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Strategic Default Atlanta, GA

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Client Reviews

Strategic Default

Ira and Jamie Gingold Bankruptcy Attorneys in Atlanta GA

Buying a home is almost always viewed as an investment that should gain value over time. For most people, a home is the largest purchase that they will ever make in their lifetime, and they are generally willing to make a large investment. A home is a large piece of property, after all. However, the economy in the United States is still categorized as “unstable,” and the return on any investment is never guaranteed.

In the past few years, many people have found themselves “upside down” in their mortgage. That is, they now owe more money that the bank says that their house is worth. In many cases, with the decline and/or instability in the housing market, it can take years before a home regains all of its value; in some cases, it may never reach its initial value. What some home owners have chosen to do is to stop making payments, even if they can afford to stay current, simply because the home has become a bad investment. This scenario is known as Strategic Default, which is sometimes referred to as voluntary foreclosure or “walking away” from an investment.

Generally speaking, strategic default is more of a business decision than it is a decision based on not being able to afford current payments. As with any decision to stop making payments for something that you owe money on, there are consequences that must be taken into consideration before choosing to default on a loan. The state of Georgia allows deficiency judgments where the lender can seek a personal judgment against the borrower to recover the deficiency after a foreclosure sale. For example, if the total debt owed on a home is $350,000, but the home only sells for $275,000 at the foreclosure sale. The deficiency is $75,000. The lender can seek a personal judgment against the borrower to recover the deficiency.

Any default on a loan will also negatively affect your credit score, and it will make you ineligible for a Fannie Mae-backed mortgage for seven years.

For individuals who are upside down on a home mortgage, it is often in their best interest to pursue a Chapter 13 or Chapter 7 bankruptcy. Business owners with larger financial accounts are often able to cover the loss of strategic default. It is beneficial to seek the advice and counsel of a bankruptcy attorney who can review options with you before making a large decision that will impact your future. Gingold & Gingold, LLC, can navigate these issues with you to understand the implications and help make the best choice for your family. Contact us today.

Posted on behalf of Jamie L. Gingold, PC

195 14th Street NE #1604
Atlanta, GA 30309

Phone: (678) 915-2634


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    Our Client Reviews

    Jamie L. Gingold, PC
    5.0 / 5.0

    Based on 28 reviews

    Jack L.

    They did an excellent job with my case. Jamie took the time to really listen and understand things. She delved into the details and was extremely knowledgeable and non judgmental. Very professional and they know what they are doing. Would definitely recommend!

    Karen B.

    Dear Mr Gingold, There are so many reasons to be thankful for all you have done and will do. Anyone who has ever had unfavorable experiences with an attorney or the legal system will feel the trepidation that I experienced once I realized that my situation seemed hopeless. It was by chance and happily good luck that I decided to put my future and sanity into your hands. I was mortified at having to deal with my debts by claiming bankruptcy. I remember in our first meeting how you assured me that I was not alone and should not feel ashamed. And, anyone in this position obviously does not have money to spare and you were clear about all the costs and allowing me to pay according to my own ability to do so. You advised me in all aspects of the law, but also, you were at each meeting incredibly supportive and complementary of my personal and professional plans. Anyone else in this situation should feel blessed to have access to your expertise and support.

    Lyla B.

    I thought the process of filing bankruptcy was going to be a difficult one. However, Gingold & Gingold treated me with respect and dignity from the moment I walked through their door. I had the pleasure of working with Jamie. She is very responsive, professional, and knowledgeable. She took the time and listened to my every concern and handled each and every one of them to my satisfaction. My experience with filing bankruptcy under Gingold & Gingold's representation exceeded my expectations in a major way. They gave me such a peace of mind. I am very pleased with my decision of going with Gingold & Gingold to represent me when I filed Chapter 13 bankruptcy.

    Julie T.

    Wow! I am finally out of debt and can say that I am debt free after completing my chapter 7 bankruptcy case with Gingold and Gingold. Mr dangled was very knowledgeable and direct with regard to my debt situation. there were no surprises and the case went as I was advised. The staff was also very helpful whenever I had a question. I will definitely recommend them in the future to my friends.

    Julie T.

    I contacted getting old and getting old regarding some old tax debt and credit card debt that I needed to address and had been putting off. miss Irving in the office was very very nice and put me at ease. I met with Jaime Gingold. She was very nice and explained the procedure to me and what would be left owing to the Internal Revenue Service and the State of Georgia after my case was done. My case has now been completed and I am on my way to a new start. Thank you Gingold and Gingold for all of your help.

    Anna T.

    Amazing! Outstanding!! They went over and beyond..I would recommend them to anyone needing a lawyer!!

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