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....
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!
There`s no such thing as a mortgage fairy, but there is a tooth fairy.
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. "
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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.
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.
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.
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.