If you can no longer afford to make the payments on your mortgage, you should speak with your bank ASAP regarding a Forebearance Agreement. They may be able to work out a payment plan with you.
You'll also want to consider refinancing, or even selling the home.
As far as what happens when you stop making a payment. Eventually the bank will foreclose on the property. The property will be sold at auction as a foreclosure. You are then liable for any outstanding balance on the mortgage after the proceeds from the sale are applied--which could be very substantial considering most foreclosurs sell for 100's of thousands less than the actual value of the home. If you fail to make payments on the outstanding balance, they can then take you to court and get a judgement, and from there garnish your wages, freeze your bank account/assets etc. like with any other 'bad debt.'
In other words--refinance, sell, or get on a forebearance program NOW.
2007-06-22 08:24:06
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answer #1
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answered by Ari 3
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Banks typically start foreclosure proceedings after you've missed the 3rd payment. However, they can actually start sooner if they wish. Once foreclosure starts, most banks will no longer accept any payments from you, so don't think you can let it get to that stage and then try to borrow something from a family member or friend to get them to stop the proceedings. They can be ruthless and usually are.
I think once they start proceedings you have 30 days to move out. Otherwise, they'll send the sheriff out to evict you. That may vary by location, though, and how your original mortgage read. I just had a friend go thru this and she had 30 days to move out. However, in their case, they were renting, and it was the landlord that defaulted. So, they had no clue the mortgage wasn't being paid until they got the 30-day eviction notice. As a homeowner, you may get more time. I don't know. Even if you don't get more time, you are aware that it's on the horizon, though.
2007-06-22 04:37:34
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answer #2
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answered by sortaclarksville 5
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If you stop paying, you will eventually go into foreclosure (the bank will take your house). How quickly it happens depends on your state laws and how your contract was written, but in all likelyhood some type of proceedings will begin within a 90 day period.
You don't have to go that route-if you truly cannot afford to pay your house note, call your lender. Most lenders do not like to go through foreclosure proceedings so they will try to work with you as much as possible.
In some cases, they will either try to work with you to re-finance or possibly they may even extend the terms of the contract so that you can have time to pay (like extend the time of the loan, etc.). They can't help if they don't know, so try to call them as soon as possible.
At the least, that will give you time to try to find a buyer for your house. Worst comes to worst, you can sell to a real-estate investor who can at least get you the price you owe on the property so that you do not have to get a forclosure on your record.
A foreclosure will be on your credit report for 7 years.
2007-06-22 04:44:38
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answer #3
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answered by VitaminDude 2
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1) Talk to his parents, his best friend, or to anyone whom he values their advices. 2) Open a joint account where each one of you will put enough amount of money to pay every single ultilities including rent or mortgage. 3) If he makes more than you do, and he's not acting as a responsible man, then leave him and take the kids with you. 4) Get an attorney. Even if you're not married you can still get child support, and it will be based on how much he makes, and not how much he wants to provide. The state always lean's in favor towards the children and their mothers. Overall, he's a loser and in bad need of a wake up call!
2016-05-17 10:44:35
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answer #4
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answered by Anonymous
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I specialize in helping people like you on a daily basis. The bank will start the foreclosure process and eventually own or sell your house. This will affect your credit because you will have mortgage lates and a foreclosure on your record.
Try selling your house instead, regardless if you owe more than what it's worth or not.
If you're in California, let me know and I'll see if I can help you.
Regards
2007-06-22 04:34:55
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answer #5
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answered by Anonymous
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If you stop making payments your credit will be ruined and you will lose your home.
I think, if you can't afford to make the payments anymore you have these options:
1) Refinance to a lower rate or consolidate debt to offset a monthly savings
2) Rent out your house
3) Sell your house
4) Entice renters & buyers with Rent with Option to Purchase option
5) Stop paying
Number 5 is the worst option you can ever choose.
2007-06-22 05:06:53
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answer #6
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answered by Deme21 2
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Yes, of course the bank will foreclose if you do not meet your mortgage financial obligation. It's nice that you have a good credit rating and have always been timely, but that doesn't count for anything when you stop making payments.
Your credit score will plummet and you will lose your house. I do not advise it.
2007-06-22 04:34:52
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answer #7
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answered by acermill 7
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If you can't make your payments because you are out of work, your bank probably made you take out insurance in case this scenario happened, in which case you tell them, and you don't lose your house.
If you can't make your payments, you could go to your bank and explain why, and they may be able to lower your payment amounts so that you can keep your house.
Otherwise, if you don't make payments, they will eventually take it away from you.
2007-06-22 04:33:09
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answer #8
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answered by Julie F 5
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Yes, it will go into foreclosure. You won't be in real trouble, ... i mean you won't go to jail... but you will ruin your credit and displace you and your family, and cause a lot of headaches for a lot of people.
2007-06-22 05:22:48
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answer #9
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answered by Anonymous
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the government will take it from you. theres like HUD. or help you can get and they will help you pay for it, you can even get free food and medical attention, here its called access I'm not sure what it would be called where you are...hope you can get some help.
2007-06-22 06:10:21
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answer #10
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answered by Anonymous
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