What happens if stop paying the mortgage?
Typically, when a borrower stops paying a mortgage the bank will initiate foreclosure. Most often, the bank will wait until the borrower is 3 months behind on payments before starting foreclosure. If the foreclosure is filed and granted by the court, there will be a foreclosure auction scheduled. The bank may also sue the… Read More »
What is strategic mortgage default?
Strategic mortgage default is when a homeowner intentionally stops making payments on a mortgage, despite having the financial means to pay the loan. Strategic default is often in response to a sharp decrease in the property’s value, which causes the mortgage debt to be greater than the home’s market value.
How do I walk away from the home mortgage?
Generally, simply walking away from the property is not a good idea. In many cases, the bank will foreclose on the home and still sue the borrower personally for the loan balance. If you no longer want the property, applying for a deed in lieu, short sale, or bankruptcy may be better options than… Read More »
Can the bank sue me if I walk away form the home?
Often, after a foreclosure auction there will not be enough funds from the sale to pay the loan in full. In cases such as these, the bank may sue the borrower and garnish their wages for the remaining balance (deficiency). Additionally, the bank will usually add interest, late penalties, and legal fees onto the… Read More »
