Foreclosures

[macho]

I am tired of living paycheck by paycheck trying to keep up with a mortgage...I am thinking of just stop makiing payments on my mortages. What will happen as a result of may action and how long will it take before i'm out on the street. Can someone help answer this...?

 

[David J. Miller]

Why would you want to destroy your credit by not making payments to the mortgage company? Instead, why don't you list the home for sale and satisfy the obligation. Another suggestion is to move out of the home into a more affordable place, ie. small apartment and rent the property. Check with a local real estate agent and determine the market rents for your area. Another option might be to find a roommate to help share in the monthly expenses. As for length of time, I believe a mortgage company would take no less than 6 months to sell the home at auction. Think about it though, is saving six months of mortgage payments worth a foreclosure following you around for the next 10-years?!

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by macho:
I am tired of living paycheck by paycheck trying to keep up with a mortgage...I am thinking of just stop makiing payments on my mortages. What will happen as a result of may action and how long will it take before i'm out on the street. Can someone help answer this...?<HR></BLOCKQUOTE>

If there is enough equity in the property put the property on the market at a reduced but decent price for a fast sale (say a 30-60 day closing). If there is no equity or very little you may want to consider asking the lender to approve a short sale or giving the property to the mortgage lender via a deed-in-lieu of foreclosure. A short sale is when the mortgage loan balance exceeds the market value of the property. The lender agrees to sell the property at market value and the "negative" is either forgiven or payment arrangements are made with the mortgagor to cover the difference.

Depending on what type of foreclosure action is commenced, the time period may run 60 days to over 6 months. A nonjudicial foreclosure is fast since no court is involved and a common judicial foreclosure may run 6 months or so.