We had a lawyer visit yesterday, to discuss whether he should do a strategic forclosure of the Naugas Inn. The lawyer said that the savings from not making mortgage payments would be “very, very significant.’
The idea of a strategic foreclosure is that you quit paying the mortgage, then invite the bank to take over the real estate. They don’t want it, so you are able to negotiate a workout and pay less on the mortgage.
The idea of saving money on the mortgage is certainly interesting, and perhaps a strategic forclosure is the best course of action.