[adam_89]

If I stop making payments on my house and they take my house, what happens to me?

I don't want to stop making payments on it, some things just came about right now and raised my house payment a couple hundred dollars and I simply can not afford it.

So if I stop making payments on the house I know they will take the house back, but what happens as far as me?

Do I lose all my credit, all my financial standings or what happens?

[smoothy]

Kiss your good credit goodbye for a few years... if that happens.

[adam_89]

Thank you so much for your help.

So, lets say that my house gets taken away, is that the end of my house payments and I'm done paying for the house?

[smoothy]

Maybe... maybe not... legally they can come after you for any amount between what your loan is for and what they can actually sell the house for... including costs incured on the foreclosure process... just like a reposessed car. Now that's like getting blood from a turnip if you truly have nothing... but for those that try to bail on the loan and treat it like the stock market and really do have the assets... its not over.

[Fr_Chuck]

First or course your payment went up only if you had some type of adjustable mortgage ( I will guess) but interest has not been going up, so why the large increase in your payment.

They may start foreclosure in a couple months but many are going as long as 12 months before they foreclose.

Once the home is sold you will have to move of course.

It stays on your credit report for @ 7 years

[adam_89]

Well I have a fixed rate, I was in no way going to get a variable rate.

The people doing my escrow screwed up and didn't pay my taxes. So now I am $1400 behind and they want to tack that on for the next year to my house payment even though it wasn't my fault.

Then my insurance on my house after 2 years decides to almost double. It is going to be tough and I'm just not sure if I can manage it, so I am looking at the worst right now just in case.

[smoothy]

Do you really mean your taxes went up and they didn't take enough for the increased rate? THat happens to me frequently, they progect what they think they will be for the next year and adjust it to suit.

Because you did pay them the taxes last year... penalties due from their failure to pay it on time they have to absorb.

Localities rather than tighten their belts like the rest of us have had to do... just jacked up the tax rates even higher than the property decreased in value. Still in effect giving themselves a huge tax increase.

Its important to differentiate between the two and really not that easy to know the difference all the time because both have you out of pocket more every month. They can pass on differences from undercollecting based on their estimates... they can't pass on fines due to their failure to pay on time.

As far as insurance... you can try to see if you can get a better deal with a different insurance company... and with a increase that drastic... you should.

[adam_89]

Yea, I am pretty much screwed on the tax part, nothing I can do about that except pay it. They were only paying $0.12 a month for my taxes and I guess I never caught on. So now here I am with this big payment and broke.

I am looking for different insurances but I the average I find is about $100-$150 dollars cheaper a year. I don't know how that would work if I switched. Wouldn't I have to pay that up front or something?

[adam_89]

(Blank Post)

[Stringer]

HI Adam,

If you found lower home insurance you can have that put in escrow with your monthly payment.

Have you discussed this with your boss? Possibly if you sat down and told him what you have told us he may consider either a loan with small/long term payback or even possibly a raise? Or both.

Stringer

[adam_89]

My boss is a nice guy and all but I really hate to ask him for anything. If I could get the rest of my overtime back it would be better. I just don't think he would go for it.

My insurance and taxes have been Escrowed in since I bought the house. I thought it would be the smarter choice. Now I don't know.

[88sunflower]

I can answer this in two ways but neither will help.

Your in the situation I have seen so often when I was at the bank. People thought escrow was great. Then bang why did my payment raise so much? I had personal friends not understand this and they wanted to refinance for a smaller payment. I made the choice when we put our new home in not to escrow. When your week to week living its not a good thing.

Changing insurance companies is not a hassle at all. First shop around. More then one. It takes effort. Do it. You may need that first payment but chances are when you cancel your other you will get a refund check. Just make sure if and when you cancel your other insurance you state you want the cancel date as of today. Meaning that day your speaking with them. I had this happen when moving to my new home. My old home just let it lapse. They never cancelled I never got back money. I paid insurance on a home for a time that was no longer mind. Learn from my costly mistake.

If it's the time you need to let your house go back. Don't. Bankers are more then willing to go above and beyond to keep you. Call them, make an appointment and explain. They will give you your options.

[adam_89]

That was very helpful, I think if I can find another insurance I might keep it escrowed but taxes worry me. I might not do either anymore. This just makes me sick. Also, I went to my bank and talked to them last night to ask for help and see what my options were at getting better before it got worse. They pretty much said, "we are a bunch of ignorant people with no knowledge in our fields, the only way I know how to answer you is with the response, "I don't know" Then you will leave the bank more clueless than before."

Yay for me!

[88sunflower]

If that's the impression your getting then you be more forward. You ask them who you can talk to that will know. Simple as that. They have to help you or you push for the answer.

I was that person once. If I didn't know the answer that's how I acted. Then one day I said "hmmm this is stupid. I am given the opportunity to learn and this person needs help, who can I call to help us?" With that attitude I soon became the Supervisor.

Don't stop until you get your answers. If you don't want your taxes escrowed they don't have to be. Simple as that. It can be changed.

[adam_89]

Thank you.

I talked to the people I was supposed to half the day yesterday but The only people I can talk to is at a call center. That's what they told me. As most of you know at call centers they are mostly foreign and I can't understand them half the time. I just like to talk to a person face to face to get my answers.

I am going to lunch, I will be back in a bit.

[88sunflower]

Well watching my boss in action I have learned a lot. You get those people at call centers and you ask for there boss. Or if your difficult enough they will forward you. More often then not you will get what you ask for.

My honest concerns are why are you getting call centers? My insurance agents are all one on one or maybe the office help. If you get a new insurance try a small town agent. I have noticed personally with the products and price at times it better to stay local.

[adam_89]

I would like to stay local. The thing I am getting is the call centers for my bank. I went to my bank to talk to them last night and they told me nobody there could help me because they aren't allowed to and that I would just have to call the call center.

Just a very very very good tip. If you ever decided to change banks, do not go to Chase(JP Morgen) Bank. They are the worse bank I have ever had. They have cost me thousands of dollars and now here we are again costing me over a thousand dollars.

There is a small town bank that I get all my loans with and deal with a lot but They don't offer a lot of the things I want or I would go there.

I can't help the fact that Chase picked up my loan for my house. It was through another bank but then Chase bought them out.

[88sunflower]

I went through the same thing with Key Bank. I always thought they were local, so to speak. Even though they were all over. But technically when our first mortgage was approved we were never told it was more or less an affiliate of Key Bank. I was not happy. Same as you. Any questions couldn't be answered. I had to call outside the bank. Needless to say they do not hold the new mortgage.

[adam_89]

Yea, I was with another bank then one day I got a letter in the mail saying Chase took over the loan. So I get to deal with them all the way around.

[smoothy]

A particular Credit Union holds the note on my house... they have never sold a mortgage to date. Before we refinanced there a number of years back it did change hands a few times the first few years we had the mortgage