Chamillionaire Strategically Defaults on His Mortgage

The rapper Chamillionaire recently alerted many of his fans to the concept of a strategic default -- a rather high-end personal finance concept. The rapper was asked about one of his homes that went into foreclosure in a recent interview, and explained why he let the house go deliberately, rather than working to keep up with the mortgage payments. The rapper told TMZ:

"I have multiple mortgages. This house actually was my most expensive mortgage. ... When the market went down, the house went down too and it was just worth nothing. ... I just decided to let it go, give it back to the bank. It wasn't a situation where they came and took it from me . I felt like I didn't want to pay that much money a month for a house I'm never at. ... I just didn't feel like it was a good investment. ..."

A strategic default is when you choose to let go of your home, rather than keeping it. It's not always the case that the bank comes and takes your house without your permission in a forced foreclosure. In this case, you are simply passing the house on because it's too much trouble to pay the bill.

http://xml.channel.aol.com/xmlpublisher/fetch.v2.xml?option=expand_relative_urls&dataUrlNodes=uiConfig,feedConfig,entry&id=894244&pid=894243&uts=1276202505

http://cdn.channel.aol.com/cs_feed_v1_6/csfeedwrapper.swf

Hip Hop At The Movies

Beat Street
Following the release of 'Wild Style,' 'Beat Street' was the 1984 film that also focused on breakdancing, DJing, and graffiti. Directed by Stan Lathan, and starring Guy Davis, Rae Dawn Chong, Mary Alice, Saundra Santiago, and Franc Reyes. Artists such as Afrika Bambaataa & the Soul Sonic Force, Doug E. Fresh, Clive "Kool Herc" Campbell, and Grandmaster Melle Mel & the Furious Five had cameo appearances while also being featured on the soundtrack.

Everett

AFP

BlackVoices.com

Hip Hop At The Movies -- Through The Years

8 Mile
Directed by Curtis Hanson ('L.A Confidential'), '8 Mile' is a 2002 hip hop semi-autobiographical account of rapper Eminem's early years in relative poverty growing up in Detroit, and his early career in rap. Also starring in the film were Oscar winner Kim Basinger, Brittany Murphy, and Mekhi Phifer. The film won an Academy Award for the Best Original Song for Eminem's 'Lose Yourself,' becoming the first film with a rap/hip-hop song to win an Academy Award, becoming the first film with a rap/hip-hop song to win an Academy Award.

Hip Hop At The Movies -- Through The Years

Above The Rim
Starring Duane Martin, Leon Robinson, Tupac Shakur, Marlon Wayans and Christopher Andrews, 'Above the Rim' is a 1994 film that tells the story of a promising New York City high school basketball star (played by Martin) and his relationships with two people; one a drug dealer (played by Tupac) and the other a basketball star (played by Leon) now employed as a security guard at his former high school.

Hip Hop At The Movies -- Through The Years

ATL
'ATL' is a 2006 drama film, and the feature film directorial debut of music video director Chris Robinson and the film debut of rap artist T.I. Also starring Antwan Andre Patton, aka Big Boi of the rap group OutKast, Evan Ross, Jackie Long, Lauren London, and Mykelti Williamson, the film is a coming-of-age tale concerning Rashad, played by T.I., and his friends in their final year in high school and on the verge of adulthood. It's loosely based on the experiences of the film's producers Dallas Austin and Tionne "T-Boz" Watkins (of the R&B group TLC) growing up in Atlanta, Georgia.

Hip Hop At The Movies -- Through The Years

Belly
Music video director Hype Williams made his feature film debut in 1998 with 'Belly,' which starred rappers DMX and Nas, Method Man, Vita, dancehall artist Louie Rankin, and R&B singer T-Boz from TLC. The story centered on a pair of vicious black gangsters who have spiritual awakenings.

Hip Hop At The Movies -- Through The Years

Boyz N The Hood
Directed by John Singleton in 1991 about life in South Central, Los Angeles, California, 'Boyz N The Hood' starred a host of newcomers at the time, including rapper Ice Cube, Cuba Gooding, Jr., Morris Chestnut, Nia Long, Angela Bassett, and Regina King. It was nominated for both Best Director and Original Screenplay during the 1991 Academy Awards, making Singleton the youngest person ever nominated for Best Director and the first African–American to be nominated for the award.

Hip Hop At The Movies -- Through The Years

Breakin'
Breakin' is a 1984 breakdancing-themed film that starred Lucinda Dickey, Adolfo Quinones, and Michael Chambers. Rapper Ice-T made his film debut in the film, which centered on a struggling young jazz dancer (played by Dickey) meets up with two break-dancers. Together they become the sensation of the street crowds.

Hip Hop At The Movies -- Through The Years

Brown Sugar
Written by Michael Elliott and Rick Famuyiwa and directed by Rick Famuyiwa, 'Brown Sugar' is a 2002 romantic film about a hip-hop record executive (played by Taye Diggs) and a magazine editor (played by Sanaa Lathan) (who have been friends since childhood) becoming more than friends despite the fact that they're both involved in other relationships. The film also starred Nicole Ari Parker, Boris Kodjoe, Queen Latifah and Mos Def, with several cameos from hip hop artists including Kool G Rap, Pete Rock, Common, Method Man, De La Soul, Slick Rick, Talib Kweli, and Fabolous.

Hip Hop At The Movies -- Through The Years

Carmen: A Hip Hopera
Directed by Robert Townsend in 2001 and based upon Georges Bizet's opera, 'Carmen,' 'Carmen: A Hip Hopera' starred Beyoncé Knowles, Mos Def, Rah Digga, Wyclef Jean, Mekhi Phifer, Da Brat, Joy Bryant, Jermaine Dupri and Bow Wow.

Hip Hop At The Movies -- Through The Years

There can be a number of reasons that you choose not to pay. The mortgage may not fit your budget, the value in the home may have dropped a great deal, or the mortgage may have increased recently due to it having an adjustable rate. During the recent economic downturn, many Americans found themselves without jobs, and realized that the dream home they'd been occupying had suddenly become a nightmare for their family.

If you choose to strategically default on your mortgage, you should realize that there is going to be damage to your credit rating. A default on a home is going to reduce your credit score and make it difficult to get credit in the near future. Also, you will become liable for any amount of money in the short fall, which is the difference between what you owed the bank and what the bank receives when it sells your home to someone else. If you do not deal with the shortfall, you may find that the creditor garnishes your wages or sues you for the balance.

If you feel that you are in the middle of a temporary setback and you have plenty of cash, then a strategic default may get the economic monkey off your back just long enough for you to get on your feet. Also, if you want to avoid losing points on your credit, you may consider selling the home for less than what you owe and paying for the difference yourself. Either way, if you are going through a mortgage crisis, you have more options than you think. A strategic default, while not a perfect solution, can help you make it through.

Lawrence Watkins is the Founder of Great Black Speakers. He is also the owner of speakers' bureaus dedicated to Hispanic speakers and Christian motivational speakers. His book, "Frame Your Future: 8 Principles to Effectively Focus on the Future and Not Dwell in the Past", will be released in August 2010. If you would like Lawrence's articles delivered directly to your email, please click here.