Posted on: 19th Nov, 2008 06:15 pm
I have a rental property that is worth much less than the loans total ($250K 1st + $150K 2nd = $400K owed on $250K value property). I collect $1,450/month but have not been paying the Lender on both loans, which is Indymac Bank and is in bankruptcy with the FDIC running them. I am now five months behind but they have a moratorium on foreclosures, so they have not served me with Notice of Default. The property and I are both in California. Is my failure to pay the mortgage a criminal offense?
Welcome Billzimmerman,
I suppose this isn't a fraud or a criminal offense. But if you don't pay for the mortgage, the lender will take some legal action after the moratorium is over. But why haven't you been paying? Is it just that you couldn't afford to make payments while at the same time talking care of other liabilities?
I suppose this isn't a fraud or a criminal offense. But if you don't pay for the mortgage, the lender will take some legal action after the moratorium is over. But why haven't you been paying? Is it just that you couldn't afford to make payments while at the same time talking care of other liabilities?
Hi billzimmerman,
Since IndyMac has filed bankruptcy and FDIC is running the bank, probably FDIC or the servicer to whom IndyMac has sold off it's loans, may take legal action against you if you're not making payments. They may conduct a foreclosure on your property. So, if IndyMac hasn't send you a Notice of Default, the new servicer may do so.
Regards,
Jessica.
Since IndyMac has filed bankruptcy and FDIC is running the bank, probably FDIC or the servicer to whom IndyMac has sold off it's loans, may take legal action against you if you're not making payments. They may conduct a foreclosure on your property. So, if IndyMac hasn't send you a Notice of Default, the new servicer may do so.
Regards,
Jessica.
you've breached your contract with the bank. they can begin a foreclosure action; they cannot arrest you for failing to meet your contractual obligation.
