Can't pay mortgage, what's the worst thing that can happen?
2006-06-09 20:41:51 · 10 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
The worst thing that will happen?
The bank will forclose and give you the boot. And that will seriously screw up your credit.
But you have a LOT of options before that happens. If you are having troubble making your mortgage payments talk with your lender sooner rather than later. Many will work with you, and all of them would rather work out some sort of situation rather than forclose.
If it comes to the point where you simply cannot meet your obligation to the bank you should offer to turn over your property to the bank in leu of forclosure - it is called deed in leu of forclosure I think. You still loose the house ( you give it to the bank) but you will at least preserve your credit rating that way, and the bank is spared the hasle and cost and time involved with forclosure.
Talk to your lender before it becomes a problem.
2006-06-09 20:53:20 · answer #1 · answered by ***** 6 · 2⤊ 1⤋
There are many ways to avoid foreclosure, most lenders will work with you. They may set up a forebearace agreement with you that will allow you to bring your mortgage current in anywhere from 3 to 6 months. If you are still not able to make payment the lender will proceed with foreclose preceedings. The length of time that you have to redeem the property will depend on what state you are in. In California if you miss 3 payments, the lender can file a notice of default(NOD). You can reddem the property anytime up to the sale date. After 3 months the lender will set a date to sell the property. If the lender auctions the property off for more that you owe, you are entitled to that money minus any costs that the lender incurred.
2006-06-10 06:34:21 · answer #2 · answered by Martin 2 · 0⤊ 0⤋
Depending on the lender, they may send some people to rough you up. It's not uncommon for a bank to spend $10k on a hit contract to avoid the extra holding costs should you file for bankruptcy. I've also heard of people finding their pets dead, with a notice of default stuffed down their throats.
2006-06-10 11:40:53 · answer #3 · answered by SndChaser 5 · 0⤊ 0⤋
You increase the number of homeless sleeping in cardboard boxes or where ever they can stay without being chased away by the police.
2006-06-10 03:20:05 · answer #4 · answered by fran t 2 · 0⤊ 0⤋
they will declare you a bankruptcy and probably confiscate your belongings to be auction off to pay for the mortgage you took.
2006-06-09 20:45:22 · answer #5 · answered by jims_bong 5 · 0⤊ 0⤋
You can loose your house and all the money you have paid so far. Your credit will also suffer.
2006-06-09 23:59:28 · answer #6 · answered by Track Walker 6 · 0⤊ 0⤋
The bank seizes your house and they foreclose on it. And you have no more home!
2006-06-09 20:44:16 · answer #7 · answered by nitemere11 3 · 0⤊ 0⤋
You will lose your home.
2006-06-09 20:44:17 · answer #8 · answered by Anonymous · 0⤊ 0⤋
you lose your house?
2006-06-09 20:46:46 · answer #9 · answered by bluebonnie1991 3 · 0⤊ 0⤋
i say you are s.o.l.
2006-06-09 20:48:59 · answer #10 · answered by ronzohooter 4 · 0⤊ 0⤋