• Homeowners who strategically default are likely to find their credit will be negatively impacted and they should expect to be prevented from getting another mortgage loan for 7 to 10 years.

• Many homeowners are concerned about the possibility of the lender suing for the amount of money owed on the loan when a house goes into foreclosure. Whether or not the lender has legal justification to do so depends largely on where the property is located.

• In "recourse" states, a lender can go after the homeowner, and usually other assets like a primary residence, for the full mortgage amount. Examples of recourse states include Maine, New Jersey, and Hawaii.

• In "nonrecourse" states, a lender agrees to accept whatever the property fetches at a short sale, foreclosure sale, or deed-in-lieu, and generally can’t sue for the full loan amount. Florida, Connecticut, and Arizona are among the nonrecourse states.

• California is in a third category called "single-action" or "one-action," which allows the lender either to foreclosure on the owner or file a civil lawsuit for the full loan amount. Other single-action states include New York and Idaho.

• Homeowners should be advised that even in a nonrecourse state, those who opt for a strategic default on a previously refinanced property may not be protected from lenders, because the mortgage in not in accordance with a first purchase.

• Although California is a single-action state, lenders can still sue homeowners for repayment of a second mortgage or home equity line of credit.