Tina, Home Seller in Iowa

If you put your house up for sale, and move out do you still pay the mortgage on it if not living there?

Asked by Tina, Iowa Thu Sep 6, 2007

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15
Thanks Artur:
Tina - you have a friend in Artur - please read follow-up responses. Hope you are able to get the right answers. Let us know how it turns out - we will be rooting for you!
2 votes Thank Flag Link Thu Sep 6, 2007
Tina - You have received a couple very witty responses. I will tell you that you must continue to pay on this mortgage even if you move out and someone else moves in. If you rent the house - the renters pay you and you pay the lender.

Now, having said this - I will ask if you have your original loan documents. You seriously need to read these pages carefully. I believe you will find paragraphs on the process by which the lender can take your home.

Please contact your mortgage company & ask to speak to someone concerning your loan. You may be like so many out there in need of a short sale. Good luck and look out for the mortgage fairy - he is really deceitful....
2 votes Thank Flag Link Thu Sep 6, 2007
Tina,
What steps have you taken with your new mortgage company? Have you contacted them and let them know you are having problems. It is really probably easier to recover from bankruptcy than from foreclosure issues. Most banks will work with you to get straight again. If you have moved and cannot sell, I would try renting it out just to get help with the mortgage. Let us know how things turn out. We are all pulling for you!
Web Reference: http://carriecrowell.com
1 vote Thank Flag Link Thu Sep 6, 2007
Unfortunately, the answer has to be an unequivocal YES. You owe the mortgage whether you live in the property or not. If you fall behind with your mortgage payments, it will affect your credit and you may not be able to qualify for a loan to buy a new home. In the current market, lenders are more sensitive about late payments in your credit history than ever. Keep up those payments and I would highly recommend that you get pre-approved (not just pre-qualified) for the purchase of your next home before you even put your home on the market.
Web Reference: http://www.go2kw.com
1 vote Thank Flag Link Thu Sep 6, 2007
Ute Ferdig -…, Real Estate Pro in New Castle, DE
MVP'08
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Tina

I would suggest that you make contact with your lender. Most lenders will work with you if you have fallen behind on payments. If you do not pay, they will take your home away.

Good Luck
1 vote Thank Flag Link Thu Sep 6, 2007
Mr.P, Other/Just Looking in Arizona
MVP'08
Tina, Until you close title and are no longer responsible for payments, you have to pay the mortgage you signed on when you purchased. The lender doesn't care if you are living there or not. If you do not make payments, they can foreclose and reclaim the property. That doesn't alleviate you from your responsibility to pay back the loan, though.
Web Reference: http://www.dianeglander.com
1 vote Thank Flag Link Thu Sep 6, 2007
I would suggest that you make contact with your lender. Most lenders will work with you if you have fallen behind on payments. If you do not pay, they will take your home away.

There`s no such thing as a mortgage fairy, but there is a tooth fairy.
1 vote Thank Flag Link Thu Sep 6, 2007
Mr.P, Other/Just Looking in Arizona
MVP'08
Tina,

Yes you are still required to make the payments to the lender even if you do not live there. If you dont your credit will be adversely affected!
0 votes Thank Flag Link Thu Sep 27, 2012
if i put house up for sale do i still have to pay council tax
0 votes Thank Flag Link Thu Oct 6, 2011
Tina,
According to William Markham, attorney in San Diego, you still can try to negotiate surrendering the property to lender:
"Here is your problem. You know that you will inevitably default on the note (because you are headed north to frolic with your dog while drinking whiskey from a crate). But you do not wish to suffer the credit stigma or pay the many fees and extra costs of the inevitable foreclosure. You therefore tell your lender that it needn't bother with the formalities and technical requirements of a foreclosure because you will simply turn over your title to the property, which is called your deed of title, rather than lose it by a foreclosure proceeding. This is called a surrender of title in lieu of foreclosure. Some lenders will sometimes accept the surrender, while others typically refuse to do so, but the matter is often one that can be negotiated. "
To read more click here:
http://www.maldonadomarkham.com/california-foreclosure-law.htm

So, if everything else fails - you should try to surrender the title to the property. You could avoid foreclosure or short sale with all negative credit implications.
Web Reference: http://www.cimpler.com
0 votes Thank Flag Link Mon Sep 10, 2007
Artur Urbans…, Real Estate Pro in Burlingame, CA
MVP'08
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Tina....You are responsible for the mortgage payment whether you are living in the property or not. As long as there is a open loan it is your responsibility to make your payment.

If you are having financial troubles, please call you bank immediately to see if you can work out a payment plan until it is sold or you are back on your feel. Good luck.
0 votes Thank Flag Link Thu Sep 6, 2007
Pam Winterba…, Real Estate Pro in Danville, VA
MVP'08
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For all who think that this question is a joke, please look to another Tina's question:
http://www.trulia.com/voices/Home_Selling/The_mortgage_compa…
It is a real call for help.
Web Reference: http://www.cimpler.com
0 votes Thank Flag Link Thu Sep 6, 2007
Artur Urbans…, Real Estate Pro in Burlingame, CA
MVP'08
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Dear Tina,
Thousands of people abandoned their homes in the 30s and 40s to stop their mortgage payments. I guess there was no FICO score to worry about at that time. Unfortunately, it will not work these days and your house will be foreclosed if you don make payments. Not living in the house will not stop your obligation.

By the way, is anyone there old enough to remember what and when the law changed? I heard that it was a pretty common thing in the past.
Web Reference: http://www.cimpler.com
0 votes Thank Flag Link Thu Sep 6, 2007
Artur Urbans…, Real Estate Pro in Burlingame, CA
MVP'08
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Hi Tina,

Yes! Yes! Yes! Do not lapse your mortgage payments. It is one of the most critical payments that you can make as far as your credit is concerned.

Please talk with your real estate consultant, lender or financial advisor for more help.

Irina
0 votes Thank Flag Link Thu Sep 6, 2007
Tina,
You are resonsible for paying for the mortgage on your home until the home is sold and the mortgage is paid in full.
0 votes Thank Flag Link Thu Sep 6, 2007
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