What happens to a new mortgage that immediatly defaults?

Question

I recently purchased a home for me and my fiance with the intent of us living in it a starting our lives together, within 2 months of living in the property, we decided to break up. The home is completely in my name and I went into a serious depression, I quit my job and visited friends in another state until recently. I only made 1 mortgage payment on the house before renting it out to a couple. The couple moved in and payed me only ONE time and have not payed me yet. I've been trying to get them evicted but the court process is too slow and now I'm 2 months late on the mortgage. I cannot afford the place on my own and now these people are taking advantage of my house. What happens to a new mortgage that immediatly defaults?

Answer 1

The same as any other which defaults. Your house will end up in foreclosure, your credit will be trashed, and you may owe extra federal tax on the deficiency amount.

Answer 2

Your mortgage contract will clearly spell out the consequences should you default on your loan. Default is usually associated with failure to make your mortgage payments. While this is the most frequent cause of default, other common causes include:

Failure to pay property taxes;
Failure to have insurance or sufficient insurance on the property;
Failure to obey local, state or federal law as it relates to the premises;
Deliberately damaging the property that secures the mortgage; and
Leaving the place vacant for an extended period of time (i.e. abandoning the property).
If you encounter financial difficulty and will be unable to make your mortgage payments, you should speak to your lender immediately. If this is a short-term situation (perhaps due to illness or cash flow problems) some lenders may waive payments for a short period of time or allow you to make partial payments. Alternatively, the lender may suggest you defer the debt and make new payment arrangements. This usually will entail lengthening your mortgage by the number of months you were unable to make the full payments.

If these solutions are not appropriate to your situation, or are not acceptable to the lender, seek the advice of your lawyer immediately. Other options may be available to you such as selling the property to pay off the mortgage loan and any outstanding payments. Many lenders are doing short sales as well if the property has gone down in value.

Good luck. I wish you well.

Answer 3

Call your mortgage lender and try to work something out. With record defaults, they may work with you.

Any default, no matter when it happens, is subject to reposesion. You need to do everything you can to protect your credit.

Break up was hard. It sucks. Life isn't fair. Now it's time to get tough. Get those low-lives out of your house asap. This could ruin you for a long while. You need to work with the bank.

Answer 4

After 90 days of no payments the lender will start the foreclosure process. Put the home up for sale.