I’ve recently lost my job (2nd time in 3 years) and its making it hard to keep my house. I had to move from Indiana (where house is located) for a job, but couldn’t sell it (too much owed for what worth). I have tenants in the house, but I still lose money every month. Its come to the point that I can’t afford it and I simply want to let it go.
I’ve attempted several times to reach my mortgage company’s hardship department via fax (their only method of communicating with them) and they have not called me back.
What happens if they foreclose on the house while I have tenants in there? I don’t want that house at all, but its much better than going through BK. Your input is appreciated.
The tenants will be able to live there throughout the whole foreclosure process. Then after foreclosure, either the bank or the new owners from the auction will kick them out.
Don’t give up on this property. There are several things you can do to get “some” money instead of “no” money. No matter what happens, your credit has already been hit once you get the notice. The worst thing you can do now is just let it go to foreclosure. You might want to read our Short Sale Ebook, it will give you some new hope.
Also be mindful of what is called Rent Skimming. This means charging rent to someone but not making the mortgage payment. Each state will have different laws against this. It can be defined as “An owner collecting rents and deposits on property without making payments on the loan and pocketing the rents”.
There are laws against this, so I would be mindful of this as you go through this process because it is considered a form of real estate fraud and may subject you to civil and criminal penalties.