If I default on a mortgage what happens?

Question

Will the mortgage company sue me for the difference between what I owe and what it is sold for if I default? Also, will there be a lot of difference between a default and being several payments behind?

Answer 1

you lose your house

Answer 2

Usually a lender will wait until you miss the second payment. Then they send you a notice that they are going to start to foreclose and make demand for the rears plus penalties in order to stop any further action. If not paid to date, they will send someone to the property to post a Notice on the house of their intention to foreclose. Then there will come a time when they will have to run a Notice of Trustees Sale in your local News Paper. This lets the world know that you (your name) are in default on the subject property. The address and legal description will also appear in the Notice along with all the recorded information. The Notice will also state that the house will be sold to the highest bidder on such and such date and where the auction will be held. I am not sure if they will state a starting bid.
A foreclosure usually takes three to six months to complete. If the foreclosure is completed they will send the occupant a Notice to vacate the premises within 30 days. If not vacated by the specified time they will bring a Police Officer to remove the occupant.
Lenders really don't want to foreclose and the sooner you contact them to try to work something out the better, that is if you desire to figure a way to work something out.
If you feel your in over your head you could contact the lender to see about just signing a Deed over to them in Lieu of a Foreclosure.

Answer 3

If you don't pay they will foreclose on you. They must sell the house at least 66% of the market value. If you owed more than 66% including, attorney fees, sheriff fees, advertising fees, late fees and any other fee's they can think of, then they can come after you for that. The best thing you can do is try and do a " deed in lue of foreclosure" unless you are in Louisiana and its called a "Dation En Paiement". Your bank will have all the required forms for this. It will save them money on attorney fees and the sheriff sale. The faster you request it the better your chances are of getting it. It would not hurt to have an attorney for you look over the papers before you sign. If you have the ability now to pay you can also try for a deferment plan or even worst case a BK Chapter 13. The 13 will destroy your credit but save your home if you never miss another payment.

Good luck,

Michael Vogt

Answer 4

They can, but usually if you can't pay your mortgage, they aren't going to get a default judgment out of you, so...

Negotiate for a "short sale" which means they take your house for the balance owed on the home. This is usually the fastest thing for everyone, but if you don't have any equity or the housing market dropped in your area, they might not go for it. Talk to the lender-- it is always better to try and negotiate and let them know what is going on with you financially than it is to try and hide.

Answer 5

im sure you can work out a deal with your mortgage company to pay those missed payments overtime.like lets say you owee 3000 in back payments they can put you on a plan to repay that along with your current payments.you may get a 10 month plan which would add 300 to your regular payment a month for those 10 months

Answer 6

The mortgage company will take your house and sell it for whatever they can get for it. They will take the amount owed, plus pentalties and late fees. If there is anything left they will send it to you, if you still owe they can still go after you.

Answer 7

Chuck Norris will scissor kick in the back of the head and take your house!

Answer 8

The bank, which owns your house, will take possession.

Answer 9

bank will repo your house since they own it