Posted on: 14th Oct, 2011 11:34 am
Hypothetically speaking, what would happen if i lost my job and had no income to pay off my mortgage?
Hey Guest!
When you do not pay your mortgage, or stop paying your mortgage, the first thing that happens is the lender reports to the credit bureaus that you have not paid. Second, your credit score will drop as much as 200 points. Your credit company may raise their interest rate, lower your credit limit, or close the account. Third, after 90 days of not making payments, the lender will contact you, trying to persuade you to make a loan modification. If you do not wish to cooperate and continue missing payments, you will be served with a foreclosure and eviction notice, taken to court and the house will be foreclosed upon.
However, since it was a sudden job loss and is a temporary financial instability, the lender could suspend the payments for a while until you have an income. When the mortgage is opened, your monthly payment will be slightly increased to make up for the missed payments.
If your mortgage payment is too difficult to make, consider Refinancing. Talk more with your lender for more personalized advice.
Hope this helped you out!
Best Regards
When you do not pay your mortgage, or stop paying your mortgage, the first thing that happens is the lender reports to the credit bureaus that you have not paid. Second, your credit score will drop as much as 200 points. Your credit company may raise their interest rate, lower your credit limit, or close the account. Third, after 90 days of not making payments, the lender will contact you, trying to persuade you to make a loan modification. If you do not wish to cooperate and continue missing payments, you will be served with a foreclosure and eviction notice, taken to court and the house will be foreclosed upon.
However, since it was a sudden job loss and is a temporary financial instability, the lender could suspend the payments for a while until you have an income. When the mortgage is opened, your monthly payment will be slightly increased to make up for the missed payments.
If your mortgage payment is too difficult to make, consider Refinancing. Talk more with your lender for more personalized advice.
Hope this helped you out!
Best Regards
Welcome Guest,
If you don't pay your mortgage on time for few months, the lender will start off with the foreclosure process. The lender will foreclose the property in order to recover the mortgage dues. He will also have the rights to contact you in order to claim the deficient balance resulting from the sale of the property. Also, a foreclosure will have a negative impact on your credit report and will lower your scores by 250 points.
If you don't pay your mortgage on time for few months, the lender will start off with the foreclosure process. The lender will foreclose the property in order to recover the mortgage dues. He will also have the rights to contact you in order to claim the deficient balance resulting from the sale of the property. Also, a foreclosure will have a negative impact on your credit report and will lower your scores by 250 points.
>>what would happen if i lost my job and had no income to pay off my mortgage?
Your Lender would foreclose on your property, you'd have to move out, and your credit would be ruined.
Your Lender would foreclose on your property, you'd have to move out, and your credit would be ruined.
your best bet would be to try and arrage something other than just "not paying". a loan modification springs to mind as an option, or possibly a deed in lieu of foreclosure - easier on your credit score than bankruptcy i believe.