I have to abandon my house due to no water service New mortgage. never made a payment. what are my obligation

Question

The houses water service is broken, it is impossible to fix. I have to move out . What should I tel or not tell my mortgage co?

Answer 1

Are you really serious with this question? First, you did not provide enough detail about your water problem. There very welll may be a way to get it fixed.
Secondly, you signed a contract/mortgage, and I GUARENTEE that no where in the large print or fine print did it say that you don't have to pay if you have a repair problem.
You may however, have some recourse, but you are going to have to learn a little bit about financing first.
In order to get a mortgage, i don't care what state, every lender requires an apprasial and an inspection. IF the problem with the water could have been uncovered during this appraisial/inspection, then the company/person performing it could be held liable IF YOU CAN SUPPORT YOUR CLAIM OF 'reasonable person would have seen/known. In addition, it is possible that the city/county water district may have some legal obligation to ensure service to the property.
Back to the mortgage. In order to get a home loan, you had to have fairly decent credit, and if you don't make you regular payments, on time during this process of investigation into getting water, then your credit is screwed. If you can't fix the problem as you stated, then the lender will not be able to "mitigate' the loss in the event of a foreclosure. What they will do, in most instances is simply foreclose to obtain clear title, and charge you a freakin serious defiency balance. It will be all accrued interest, principal, fees, costs, etc.
You should let the mortgage company know of this problem for if it was "preexsisting", it is also possible that the seller failed to disclose the problem, and the realtor who sold the house could be held liable as well.
If you can prove liability in court, or you can support that the water problem is the responsibility of the water district, (city, or county), then the judge in court could order the mortgage null and your off the hook.
Ultimatly, you need an attorney, but much of this can be done by yourself first.
Go to the county recorders office, or whatever office handles the recording of mortgage/deed and look up the address of the house. All previous owners, and any problems like this will be a matter of public record, that is if the water problem was something that was addressed through the previous sale or purchase of the home, or the local government dealing with these issues was notified. That is a place to start. Get information about the inspection/appraisal company, if any complaints and what they were about. If the lender sent the inspector, sometimes they do, find out about them from your lender.
Keep copies of everything, everyone you talk to write it down, with dates, times, names. Get all the information you can following every lead to it's next level. When all that is done, hire an attorney if, and only IF this water problem was preexsisting, or IF the liability for disclosing it falls on one or all of the above.
If none of this applies and it turns out the home is uninhabitable, what about a well? If no well, and no solution to the water issue, your potientially stuck with a dead chicken around your neck.
I sure as hell don't know all the details, but I am 90% sure there is a solution to this water problem, but you have to remain accountable to the mortgage while you pursue this.

Good Luck

Answer 2

This is a tough situation. If the water was not on prior to the closing of escrow, and the mortgage company did not require it to be turned on prior to final approval, you may have something there. I would absolutely start with the title company or closing attorney to see if they can help you in this. Also, you will want to have them look through all of the documents that are in the loan file. Most of the time with conventional financing, the water must be turned on to make sure that it works. Get out all of your closing documents and start reading. You may come across something.

As far as every state requiring inspections, that is not true. FHA does not even require these to be done any longer. Although, for this very reason, they "recommend" that you have this done.

If nothing else, you will chalking this one up as a learning experience I am sure.

Good Luck.

Answer 3

The fact that the house is unlivable does not release you from your mortgage obligation. You need to talk to them right away to find out what your options are. You may have to think about suing whoever it was that sold you this house. Didn't you have it inspected? Letting this go to foreclosure will totally mess up your credit rating, so you can't just walk away.

Answer 4

that is why we have home inspectors, most loan companies will ask you to have the house inspected before buying if they did and you did not do this shame on you, if you had a home inspection completed and the inspector did not find or note the water problem on his/her inspection you have every right to sue the inspector for damages, how ever you still owe the loan company, you may want to look into taking a second loan and get the water fixed, I would avise you to check the seller disclosers in your contract you may find something a good lawyer can use, good luck

Answer 5

Unfortunately, you are still responsible for the house payment if you have closed escrow. This water problem should have come up in the inspection. If it didn't, and it is shown that it was there prior to purchasing the house, you may have the right to cancel the deal.

Answer 6

You need to cotact your Closing Attorney and find out what are your rights.Then inform that Attorney that you purchase the house with this issue and that you need to pursue this issue with the Real Estate Agency."Property Disclosure"was suppose to be given to you.Report this to the Real Estate Commision in your State.Mean while see if you can sell the house to a Real Estate Investor for what you owe.Good Luck..
www.foreclosureavoidance.ws

Answer 7

Tell the mortgage company...you're on the hook for the mortgage. Contact them immediately...

Answer 8

Seek a Real Estate Lawyer asap!!!!