Wonder What Happens When You Don’t Pay Your Mortgage?
The process can happen quickly or it can drag on for months (or more), but you should be prepared for the worst.
Palm Coast, FL – October 29, 2009
SunSentinel.com (MCT News Service) – October 29, 2009 – We all talk about what ifs.
One big what if that many homeowners have today has to do with mortgages.
About one-third of South Florida mortgages are underwater, meaning the homeowners owe more than the home is worth at today’s depressed prices, according to First American CoreLogic. Some homeowners are certainly wondering why they’re sending in the payment on, say, a $300,000 mortgage, when the house today would sell for only $210,000.
Your options: Keep paying or try to change your loan’s terms.
But some people wonder, what if I just stop paying the mortgage? It may be a tempting idea, but it quickly leads to trouble.
Here’s what could happen if you don’t pay the mortgage.
Toby’s Commentary: Talk to your lender (if you can find them) as soon as you run into trouble. Avoid foreclosure rescue scams. If they ask for money up front, their not legitimate. Report them to the Florida Attorney General’s office.
It’s just like going to college
So you put up the money and hope to find a job that will pay it back plus more for yourself. That’s a gamble, and a good one if jobs are present, in the field your are educated in. Homes will go back up in price too, as soon as builders start building for buyers. Inventory is dropping and more people retire to Florida every day. Hold on, as the bad credit walkaways will become rentors while you still own,after it’s all over
Home Values
I don’t believe that inventory is dropping. Some homes are simply going off the market for lack of activity. Then you have tons of homes that are in foreclosure not on the market yet. Then you have tons of lender owned homes that are not even on the market yet. If all of these were to go on the market at once, I am afraid for home values.