Now that the real estate bubble has burst in some markets, you just might be able to find real estate for less than the cost of a used car. Stacy Johnson explains…

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Some homeowners underwater on their home loan — meaning they owe more on the mortgage than the home's current value — are turning to "strategic defaults" in which they simply walk away from mortgage debt.

But financial experts warn — the cost of skipping out on mortgage debt can be high.

The American Bankers Association recently warned homeowners about the consequences of strategic default, including the possibility of the bank obtaining a judgment to pursue the homeowner's assets, such as bank accounts, cars and investments.

A foreclosure — regardless of whether it is because of a strategic default or other circumstances — also hurts a consumer's credit score. Foreclosures remain on a credit report for seven years, with the impact gradually lessening over time.

For someone who has a foreclosure on a credit report, the FICO score can generally begin to recover after a couple of years, assuming the consumer stays current with the payments on all the other credit accounts. In addition, a voluntary foreclosure can impact a homeowner's ability to qualify for a new mortgage for years to come.

Tax liability is another danger of defaulting. Although the Mortgage Forgiveness Debt Relief Act of 2007 (extended through 2012) offers widespread protection from federal taxes following a foreclosure, state taxes still may be due on unpaid debt.

A lender also can pursue the remaining debt from an unpaid loan by obtaining a deficiency judgment against the delinquent borrower, or may work with a collection agency to recoup losses.

And, of course, ethical questions surround strategic defaults. A survey by Trulia.com and RealtyTrac found that 59 percent of homeowners would not consider defaulting no matter how much their mortgage was underwater, although another 41 percent of homeowners said they would consider a default.

We're curious to know what you think. Would you consider a strategic default, or do you think it's just plain unethical no matter what the circumstances? Give us your feedback and opinion by clicking the 'comment' link below. Your email address will never appear with your comments or feedback.

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Having a high credit score is super-important, especially if you plan on borrowing money soon. But how can you improve it?

Millions of people have found themselves facing foreclosure since the economic climate has shifted so rapidly over the past couple of years. Thanks to President Obama’s Federal Loan Modification Plan, however, thousands of people are starting to see themselves having some new hope that they may be able to keep their home. This loan modification program is all a part of the Federal Stimulus Package and has been funded with a total of $72 billion.

Now is the time for you to take advantage of Obama’s loan modification plan that can help you stay in your own home. You’ll simply need to fill out an application and be approved, so make sure you get help with the application process because it can only be done once. Once you’re approved for the loan modification services you’ll start to see a monthly payment that’s less than 31% of your income monthly and may have a longer repayment period, a lower interest rate, waived late fees and even forgiven principle all due to the loan modification program.

This loan modification program is going to be a once-in-a-lifetime chance for you to save your home and even pay less for the house you’ve come to love. If you’re like millions in this country that aren’t sure if they’re going to make it, it’s time to stop worrying and start taking advantage of the Obama federal loan modification plan that can possibly help you. Don’t wait too long; this plan will no longer be in effect after 2012 and you can lose your chance forever if you wait until you’re already in foreclosure. The first step you need to take is to seek advice from someone knowledgeable about Obama’s Federal Loan Modification Plan to make absolutely certain that you have completely reliable information and are dealing with someone who is qualified and capable of helping you with saving your home.