Saturday, July 31st, 2010

Startling New “Strategic Default” Trend Rampant Among High Credit Score Borrowers

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strategic default image Startling New “Strategic Default” Trend Rampant Among High Credit Score BorrowersWASHINGTON, DC - Homeowners with high credit scores are 50% more likely to “strategically default” on their mortgage compared to their lower credit score counterparts, a study by Experian recently discovered.  In 2008 alone, more than 588,000 borrowers strategically defaulted on their mortgages, leaving lenders scrambling to make sense of this shocking new development.  Making matters worse, lenders were unable to point to any other time in banking history where borrowers with previously great payment history seemingly overnight decided to almost, in unison, stop making payments.  A “run-on-the-banks” like stampede that has left mortgage experts baffled (and short sale investors rejoicing).

Not surprising, the study revealed that negative equity areas like California and Florida were 68 and 46 times more likely to contain strategically defaulting borrowers than in other parts of the country.   In addition, borrowers with larger loans were far more likely to pull the payment plug.  Nationwide, strategic defaults in 2008 were 9 times their 2005 levels. 

What does all this mean to you and me?

It means that hundreds of thousands of extra short sales are being thrust into the laps of investors smart enough to take advantage of this once-in-a-lifetime opportunity.  And these strategic defaults are primarily the high priced deals too; the ones that net short sale investors the biggest profits.  So not only are short sale investors capitalizing on the “legitimate” defaults that have skyrocketed in recent years, we now have an extra group of deals, an icing on the cake if you will, that has never existed in modern banking history.

So I ask; what are you doing right now to be a part of this financial windfall?  Most of you reading this are saying “something” because you are a part of our program and are on your way to financial freedom (or already are…good for you).  I hope this article further inspires you to get out there and profit even more.  If the answer is “nothing” however, I want to take you on a brief journey to help you discover what is really stopping you…

A brief digression:  What were you doing in the mid to late 90s during the internet bubble?  A friend of mine was working for a venture capital firm.  His boss netted $200,000,000 on an internet IPO just before the bubble burst.  That’s a true story.  $200M was this guy’s personal take on the deal.  I missed the internet bubble wave of opportunity, but the moment I heard that story, I vowed to never let massive economic opportunities pass me by. 

When you look back 20 years from now, what do you want to say about what you were doing during the greatest short sale boom in economic history?  Do you want to say that you were too busy with bigger opportunities?  Unable to make the commitment?  Out of money and energy to try something new?  What possible excuse would make sense 20 years from now?  Seriously?

What would it feel like to look back, after all the dust had settled, with the real estate market having long since recovered, to a life whereby you didn’t take advantage of this almost fairytale-like opportunity?  I want you to deep down imagine this scenario unfolding and how you would feel.

It’s an awful feeling, isn’t it?  It makes me sick to my stomach just to write about it.

I understand that making big money and becoming financially free is not for everyone.  In fact, I’m very thankful for the hourly and salary workers out there who slave away day after day, week after week and year after year to make someone else rich.  I certainly don’t want to inspire those great worker bees out there to jump ship and make their own way.  So stay where you’re at!  You are the backbone of this great nation’s economy and the glue that keeps great empires humming.

But for you unpredictable, unruly, unemployable renegades, if you are reading this article, you have been blessed with a gift that very few humans on this planet will ever be given.  You are cognizant of an economic opportunity so large, so incredibly vast, that it could change your life, your children’s lives and the lives of your children’s children.  And it is within your reach.  It is available to you right now.  So what’s it gonna be? 

CLICK HERE to register for tonight’s webinar.  (If you think this article is inspiring, just wait to see what I have in store for you on this webinar!)

And I’ll leave with this…

If not now, when?

If not this, what?

If not here, where?

If not you, who?

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Comments

4 Responses to “Startling New “Strategic Default” Trend Rampant Among High Credit Score Borrowers”
  1. Trisha says:

    Phil,

    I must say, you are a GREAT writer, I love the way you write… easy to digest and absorb, yet intelligently composed. So kudos to You, from a gifted writer - myself.

    KEEP IT COMING!

    Thanks,

    Trisha

  2. Trisha,
    Thank you so much for that compliment. Truth be told, I was terrible at English in school. On standardized tests, I bombed the english portion. In fact, I studied engineering in college because my english skills were so poor. So your compliment is pleasantly surprising. I’ll be beaming the rest of the day knowing that someone out there enjoys my writing style….I didn’t even know I had a writing style until today!
    Sincerely,
    Phil Pustejovsky

  3. Bethany says:

    Phil, I am just biting at the bit to be a part of this economic opportunity! I know the potential is limitless. It would be incredible to look back 20 years from now and have the peace of mind knowing I capitalized on the opportunity. From the sounds of your article, the door just keeps opening to walk in with more and more arenas of short sales. I want it now! Thank you for the great information and motivation to get me going.

    Sincerely,
    Bethany

  4. Zachary says:

    It’s this way also for commercial investments.. I have commercial brokers courting my favor everyday now!!

Comments

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