Do I have to stay in my house?

[RTDJG]

What is the name of your state? Missouri

If I move out of my home that has a mortgage on it as primary residence, does that put me in default?

I contacted my mortgage company about short sale instead of foreclosure. They said in order to qualify for short sale, my house has to be on the market for at least 3 months. As it is, we are 3 months behind and they will start the foreclosure procedure on 7/7 if I don't make a payment by the end of June. I have managed to scrape up enough to make that payment, but I still need to catch up on other bills before I lose everything else. There is no way that I can stay in this house and catch up on all these payments plus keep racking up more utility bills. I have family that has offered to let us stay with them, but if we move will that come back on us?

[dmiller12]

If I move out of my home that has a mortgage on it as primary residence, does that put me in default?

Default? No. If the loan is a first-time homebuyer loan, leaving the home could have tax consequences, i.e. recapture tax, and in some cases, the lender could call the note due.

The 3 months in arears on payments is what causes you to be in default.

I'd put the home on the market and keep it on for at least 3 months per the banks instructions. Price it to sell. When you get an offer, disclose the fact that this is a short sale and approval is needed by the bank. Make sure you are working with a Realtor who has a track record with short sales.