Posted on: 05th Sep, 2009 01:33 pm
I need to move to another state to be closer to family and friends. I am currently up to date on my mortgage payments, have my home on the market, but it will be a short sale, as my home is no longer worth what I owe on it. I have a prospect to rent a home (with the future option to purchase) in the new area in the near future.
What would happen if I just stopped paying my mortgage and moved? I know that it would wreck my credit, but that I can recover from in a couple of years. I have no real assets to speak of, and the money that is left in my 401k would have to be taken out to pay the move and the up-front costs of the rental.
Can the mortgage company sue me for the difference between the short sale and the mortgage? Would it help if I contacted my mortgage company and explined my plite?
What would happen if I just stopped paying my mortgage and moved? I know that it would wreck my credit, but that I can recover from in a couple of years. I have no real assets to speak of, and the money that is left in my 401k would have to be taken out to pay the move and the up-front costs of the rental.
Can the mortgage company sue me for the difference between the short sale and the mortgage? Would it help if I contacted my mortgage company and explined my plite?
Hi charla!
Welcome to forums!
If you stop paying the mortgage dues, the lender will simply go ahead and foreclose the property. In my opinion, it would be better if you could short sell the property. After the short sale, the lender has the right to sue you for the deficient amount resulting from the sale. If you do not pay this amount, he may garnish your bank account or your wages.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you stop paying the mortgage dues, the lender will simply go ahead and foreclose the property. In my opinion, it would be better if you could short sell the property. After the short sale, the lender has the right to sue you for the deficient amount resulting from the sale. If you do not pay this amount, he may garnish your bank account or your wages.
Feel free to ask if you've further queries.
Sussane