In most cases, it is wiser for a homeowner to stay in their
house. Many people who are behind on
their mortgage payments have an unfounded fear that they will come home one
night to find their belongings removed and their door padlocked.
Banks prefer to have someone, particularly the homeowner,
stay in the house. Mortgage lenders do
not like vacant houses, as they lose value due to break-ins, ice damage in the
winter, or lack of upkeep.
A homeowner behind on their payments can save money by
staying in their house. Rather than
paying for rent somewhere else, they can live rent-free in their house until
the property is sold. The money that is
saved during this period can be allocated for moving costs, a security deposit,
and rent when they eventually move elsewhere.
Even if the homeowner is delinquent with their mortgage,
they are still the owner of record and therefore remain responsible for the
property. The owner could be cited by the
local municipality for not maintaining the grounds, such as failure to cut the
grass or shovel the snow off the sidewalk.
The owner is still responsible for paying property taxes.
The owner is also liable for what occurs on the
property. For example, if the owner
abandons the property and has a pool, they could be liable if someone falls
into the pool even if that person were trespassing. The owner is also expected to maintain
insurance on the property. If they
cannot afford insurance, they should inform their mortgage lender so the lender
can pay for forced placed insurance.
Unless there is a compelling reason to move now, such as job
relocation or a contentious divorce, it is wise for a homeowner to stay in the
home while the foreclosure process unfolds.
From the blog: Stop Foreclosure Right Now – Reprinted with permission.
Avoiding a foreclosure by successfully processing a Short Sale of your home is what we do! We close 90% of our Short Sales. Contact me to see how our team of professionals can help you.
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