Posted on: 19th Jan, 2009 10:06 am
We live in a condo which is getting two small for us. We cant sell it because the market value is 50000 less than what we bought it for. If we stop paying mortgage and use that money to rent a bigger place will the mortgage company garnish our wages.
They will foreclose and that will be in your credit history. Can you rent the condo and cover the mortgage?
When you do not pay your mortgage, or stop paying your mortgage, many things will happen. First, 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 put up for auctioning. hopefully all works out to your benefit and i hope my answer was sufficient.
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