Just stopped paying the mortgage in Oregon ... tell the lender "straight up", or let them figure it out?
Divorce (or at least a legal separation ... the relationship will NEVER recover) is imminent ... we have struggled with our ARM loan since day one, and they modified it this last spring, but the payment is still WAY too high.
Neither of us can afford this house on our own ... hell, we can't afford it TOGETHER! We've decided that we just need to "let it go" ...our credit will suffer 200-300 points (which SUCKS, because we're hovering around 700 now) ...
Now, the payment that was due on August 1st is the first one that we will be missing ... we are going to keep current on all other bills (credit cards, etc), if we are able. We plan on staying here "rent-free" for at least 3 months to build up a bit of a "nest egg" for rent and deposits elsewhere ...
QUESTION ONE: The lender is starting to call me every day ... do I still let them think I am going to "catch up" before the end of the month, or just tell them "straight up" that we will NOT be making any more payments? I don't want the foreclosure process to be accelerated to happen SOONER than 90 days late ...
QUESTION TWO: I know a "short sale" is better for your credit than a foreclosure ... can I wait 2 months or so before I ask the lender for a short sale, to help "prolong" the process? The longer we can stay here (about 5 months ... thru the end of the year ... would be great) the better off we will be (money-wise) in the long run.
QUESTION THREE: I'm sure an "eviction" does a number on your credit, all by itself ... does the foreclosure process always end with eviction, or can you jump ship before that?
I'm pretty sure that in Oregon, you can simply "walk away" with no recourse if you only have ONE mortgage ... so that's the plan. AHMSI can SUCK IT.
- Anonymous1 decade agoFavorite Answer
Boy, that JTT guy is clueless ...
... I say, GET YOURS, SON! String 'em along for about a month, just tell 'em you're not getting as many hours at work and can't put food on the table AND pay the mortgage ... then start a short sale with an experienced real estate guy, and then hide the cash in your mattress for, like, 8 months or however long it takes to be over (so you can move out with fat stacks, holmes).Source(s): Oregon is a non-recourse, non-judicial state, anyway ... just one mortgage, and they can't do NADA to you!
- Marc FLv 51 decade ago
You want to live in the house, but you don't want to pay for it. You know that constitutes theft right?
You need to tell them you cannot afford the payments, and see what options they give you. Try to negotiate a short sale as soon as possible. Waiting longer does not help you, you will still owe the money (plus interest).