What does usually happen if I stop paying the mortgage for my house?

Question

I am wondering what happens if I just stop paying my mortgage. How does the process usually go and in which time? Are there any laws or regulations? How long would it take until I have to leave the house finally. Would there be any consequences?
Thanks a lot for your answers!

Answer 1

It takes several months to a year to actually be evicted from your house. The consequences are considerable.

Laws regarding foreclosure vary from state to state. The repossession will damage your credit for a long time.

Many employers check credit ratings as a part of their pre hiring process, so this could impact your chances of getting a new or better job in the future.

If at all possible work with your lender on a new payment program. In most cases they don't want to foreclose on your home. If you ignore their requests for payment they lose their sympathy quickly.

Answer 2

First of all, if he is on the mortgage but not the house that is his mistake. If you are on the house but not on the mortgage, that is the lenders mistake. Sitting on your assets and doing nothing is your mistake. Bottom line is you have a h*ll of a mess brewing. You need to get the house refinanced and the other loan paid off. 3 months is more than enough time to cause foreclosure to start. If you are married and he has abandoned you, you have a lot more to worry about than just the house. Having said that, there is a chance to make money on the house, lemonade from lemons so to speak. Go ahead if you can and refinance it. If you are not on the current loan, but have the authority to talk to the lender, see about a loan assumption unless the terms are horrendous. Even so, you may be able to assume it and then "streamline" refi the mortgage if FHA and not incur all the typical mortgage costs. But the mortgage must be current to do that. If he has issued to you a Quit Claim Deed you are good to proceed, he is no longer on the deed. Get it recorded ASAP. And work with the current lender for a solution. You may be able to make a profit out of this yet by selling the home and getting a fresh start. It would be a small consolation for the remainder issues of a marriage breaking up. ***Thought: Even though the husband is on the note but you are not if the home is repossessed and you apply for another loan, when they ask YOU the question "Have you ever had a home or car repossessed?" the only truthful reply is "yes". The home is your responsibility and even though you are not on the mortgage, you did have an ownership in the home and allowed it to be repossed due to non-payment of the note. That will have to be explained to a lender's underwritting department. How they will respond? In a slowing real estate market with rising repossessions, probably not positively for you. Good luck and get going.

Answer 3

Your lender will begin foreclosure proceedings. The time frame is different in every state. Here is a website to look determine what the rules are in yours, http://www.realtytrac.com/education/noframes/overview.html
The consequences are extremely severe to your credit rating. A foreclosure will damage your rating significantly making it virtually impossible to borrow money, secure a credit card, sometimes rent an apt, purchase a car, etc. If you can get credit, the rates you will pay will be tremendously high.
Avoid foreclosure at all costs!
First, contact your lender to determine whether or not there are options for you. Your lender would prefer to work out a plan with you than foreclose as their costs can be over $50,000. Let's face it they are in the money lending business, not the home owning business. The significant rise in foreclosures nationwide has encouraged lenders to work it out rather than foreclose.
Another option you have it to sell your home outright. Contact the people at HouseBuyerNetwork.com to see if they have an affiliate quick sale agent or professional home buyer/investor in your area. If they do, they will prove very helpful in selling your home quickly.
Whatever you decide, do not ignore the problem. Face your fears and educate yourself about your options. I promise you will feel much better when you do.
Finally, get some financial counseling. Learn to budget yourself and begin to save for the future. Most counseling services are free.
Good Luck!

Answer 4

If you miss a payment, the mortgage company will send you a "Did you forget about us?" letter in the mail. If you miss a second month in a row you will probably get a phone call wanting to know why you havent't paid. If you miss a third month, you will get more mail and more phone calls. If you talk with them be prepared to explain your situation. If you don't talk to them, they will call you at work, call you at home, and send more stuff in the mail.
Consequences include having your non-payment listed on your credit report. This will effect nearly everything else you will ever want to do that requires borrowing money or renting a house/apartment/condo.
If you are having difficulty paying the mortgage, contact the company before they contact you. Ignoring the situation does no good at all. Work with the company to arrange a mutually satisfactory resolution.

Answer 5

If you stop making mortgage payments, your lender will initiate foreclosure within 90-120 days after you default. The consequences are severe and long lasting. Your credit will be trashed, and you could be held liable for any monies the lender loses when they finally sell the house to someone else.

Answer 6

First you would get letters from the bank or morgage company that owns the mortgage, If you are in financial trouble, they will work with you to catch up your payments, I think you can be even 4 month behind and still work it out. Your question is a little confusing, because obviously, you would eventually be foreclosed on. If you cant make the payments I suggest you speak with them now, or else try and either rent it out to someone and use the rent to pay it, or sell it, if you just stop paying you in essence will be giving it away. you dont want that!!! Even if you cant sell it for what its worth, and you have to take a loss, its better than giving it away.

Answer 7

Lots of financial and long lasting consequenses.
Depending on your note that you signed, nut generally after 90 days your mtg accelerates and foreclosure is started. It usually takes 90 days to go through, but can be a lot faster or a lot slower. Depending on the lender they may evict immediately or wait.........

Try to find a way around this. Talk to lender. Ask for them to re-work mtg term and payment, they will work with you. But nit if you wait too long.'

Also, when it forecloses you are responsible for all fees; when the house re-sells you are responsible for difference paid and owed. The lender gets judgement and files against you, and it stays on yur credit til paid off, and the foreclosure stays on credit for 7+ years.

Answer 8

after 3 months, the mortgage company will be sending you letters and calling you on the phone. This will continue for another 3 months....then they will start foreclosure, and then that will take 3 months, and you can do all kinds of things to hold that off...........so all said, it would take close to a year or more before you would actually lose your house.

Answer 9

normally after 3 months missed payments they will start foreclosure proceedings against you and it will ruin your credit for the next 7 years I would advise against it if you can try and sell house if you can not afford it