916 481 8106

8 things that can happen if you stop paying your mortgage/mortgage loans

8 things that can happen if you stop paying your mortgage

What can happen if I stop paying my mortgage? Housing Sacramento has compiled a list of some of the outcomes of not paying your monthly mortgage.

1. Foreclosure is when the loan holder legally takes ownership of the house.

2. Deed in Lieu of Foreclosure: You voluntarily transfer your property title to the loan holder in exchange for cancellation of the remainder of your debt.

3. Loan modification: You and your loan servicer agree to permanently change one or more of the terms of the mortgage contract to make your payments more manageable for you.

4. Forbearance: Your mortgage payments are reduced or suspended for a period of time that you and your loan holder agree.

5. Bankruptcy: Personal bankruptcy generally is considered the debt management option of last resort because the results are long-lasting and far-reaching.

6. Selling your home: Depending on the real estate market in your area, selling your home may provide the funds you need to pay off your current mortgage debt in full.

7. Short Sale: Your servicers may allow you to sell the home yourself before it forecloses on the property, agreeing to forgive any shortfall between the sale price and the mortgage balance.

8. Selling and Renting back your home could be an option. It is when you sell your home to an investor and they rent it back to you.

Never just walk away from the house. Try working things out or at least make sure all the paperwork is done in a fair way. If you walk away you are not there to protect your interest. It is a difficult process.

This list is not a complete list. You many have a very unique situation get legal and professional advice before taking any action.

If you decide to sell your house contact us and we will see how we can be of assistance.

Note: Most Real Estate Loans in Sacramento a formed by a deed of trust. The foreclosure process can be much faster with a deed of trust then a mortgage. If you have questions please email or call HousingSacramento.com

Free Guide: 5 Ways You Can Stop or Avoid Foreclosure In Today’s Market

Learn how to avoid foreclosure, stop the foreclosure process, and your 5 main foreclosure avoidance options with this free guide. 

Dan Parisi

Coffee Real Estate


[email protected]

916 481 8106

2800 Arden Way

Sacramento, CA 95825


Real Estate agent
DRE 01923081


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