Posted on: 28th Oct, 2010 07:47 am
My daughter and her husband have decided to stop paying
there first and second mortgages and just abandon there
house and rent another one because they are very
upside down and it is hard for them to make the payments
even though they can. What will or could there legal
problems be in doing this other than a bad credit rating
be?
They live in Florida
there first and second mortgages and just abandon there
house and rent another one because they are very
upside down and it is hard for them to make the payments
even though they can. What will or could there legal
problems be in doing this other than a bad credit rating
be?
They live in Florida
Hi mel!
Welcome to forums!
If your daughter and her husband stop paying the dues, then the lender will foreclose the property which will have a negative affect on their credit. Their scores will go down by 250 points and the lender can come after them in order to recover the deficient balance. It will be better if they can apply for a deed in lieu of foreclosure which will not only help them in getting rid of the property, but they won't have to pay the deficient balance resulting from the property sale.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If your daughter and her husband stop paying the dues, then the lender will foreclose the property which will have a negative affect on their credit. Their scores will go down by 250 points and the lender can come after them in order to recover the deficient balance. It will be better if they can apply for a deed in lieu of foreclosure which will not only help them in getting rid of the property, but they won't have to pay the deficient balance resulting from the property sale.
Feel free to ask if you've further queries.
Sussane