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What happens if I pay less than my total mortgage payment amount?

Posted on: 27th Aug, 2009 04:18 pm
I own two homes, one in Maryland, one in Texas. My husband got transferred to Texas recently on a military move, so we are occupying the Texas home. We plan to retire in Texas and don't plan to ever reoccupy our house in Maryland.

We were able to rent out our home in Texas but still come up about $800 a month short on that home for the mortgage payment. The payment is about $2300; rent is $1650 - 10% prop mgmt fees, for a total of $1500 to us.

Thus far, I have never missed nor been late on a mortgage payment. If I only pay the amount I'm collecting in rent to the bank each month, what will happen? Will they foreclose on that house?
I am no expert, but I believe they will consider your payment late. They will then charge late fees. Which will go on your credit report. I can only assume that leads to foreclosure.
Posted on: 27th Aug, 2009 04:21 pm
irish

Many banks will not accept partial payments. Not only would they consider you to be late, but they may return the check if it is not for the full amount. Each bank is different so you should call the customer service line and ask a few questions.
Posted on: 27th Aug, 2009 05:19 pm
irishasiangirl

Welcoem to the forum

Ultimate effect of this would be, the lender will foreclose the house

Good luck and feel free to ask
Posted on: 27th Aug, 2009 05:57 pm
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