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Is doing a Strategic Short Sale the right thing to do? First let me define Strategic Short Sale. A Strategic Short Sale is when you can afford your mortgage payments and are making payments on time BUT you owe more than the property is worth. You make a strategic decision to sell the property and offer your Lender less than what is owed as a settlement of your debt. If the Lender accepts your offer you have just completed a Strategic Short Sale.

So is this the right thing to do? Maybe. To make this decision you have to look at your overall situation.

• Does continuing to make payments and keeping the property make sense?

• Are you able to continue making payments without using credit cards and savings?

• Is making payments harming your family's financial position?

• Is the property close to being paid off?

• Will you be happy with the situation you are in now five years from now?

If you've answered "No" to these questions then you may be a candidate for a Strategic Short Sale. Contrary to popular belief I do not believe that a Strategic Short Sale is shirking your responsibilities. A Strategic Short Sale is a decision to try and settle your debt with a creditor. Notice I stated "settle" NOT avoid or walk away from. Settle. As in "Mr Lender, I would like to offer you $50,000 instead of the $100,000 I owe you. Will you accept this as settlement?".

Offering a settlement is the right thing to do. It's just as right as continuing to make mortgage payments. You are giving your creditor an option. It's their decision whether or not to accept it. In most cases they will.

Of course, there are negatives to doing a Strategic Short Sale. You will mess up your credit for awhile. Your lender may require you to participate in the loss by making a cash contribution, signing a promissory note or both. You may owe income taxes on the forgiven debt. And of course you will no longer own the property. You may have to be a renter for awhile.

So, folks, if you are struggling with whether or not to do a Strategic Short Sale step back and look at it as a business decision. You are in the business of looking out for your family's welfare. Weigh the pros and cons. Then make a decision that's right for you. I truly hope this helps. Any questions?

Related articles:

You Must Be A Deadbeat To Do A Short Sale!!

Do I Have To Miss Payments To Do A Short Sale?

Why Would a Lender Accept a Strategic Short Sale?

Not All Short Sales Are Pre-foreclosures