Should I Stop Making My House Payments?

Should I Stop Making My House Payments?

The other day, I got a call from a seller facing a Michigan foreclosure who said the words that always make me sick: “I was told to stop making my house payments”. The person who gave the advice is sometimes the lender, sometimes a person offering to negotiate a short sale or a loan modification, sometimes a REALTOR® or family member. In my humble opinion, the only person who should be giving advice on whether you make your payment or not is an attorney because they are the only ones who can tell you the legal implications of breaking the contract you have with your lender. After all, you signed a promise to pay back the money when you got your loan to buy the house, and this is the contract you are breaking when you stop payments.

All the other (non-attorney) people may be well-intentioned, but from the calls that I get from homeowners who heed this advice, the outcome is usually not what was expected.

  • Many find out their lender has started foreclosure since they are not receiving payments
  • Many find out too late that they cannot do the work out and now they are so far behind it is a monumental task to get caught back up.
  • Many find out that their credit is being hurt by the missed payments.

The other trap that people fall into is to decide they are going to stop making payments (when they can afford to make them) because the house is not worth what they owe. Out of anger or frustration or despair, they decide to break their agreement to pay the bank. Again, unless this decision is made in consultation with an attorney, tread lightly or you could set yourself up for a Michigan foreclosure.

We will never tell you to stop making payments. This is something that you and your attorney (if you chose to consult one) must decide. We will be glad to discuss your options and help you figure out your goals and share our knowledge with you but we will never tell you to stop making payments. Be wary of anyone (besides an attorney) who is ready to tell you to stop making payments.

If you are facing a Michigan Foreclosure, give us a call. We will not charge you a fee and we will keep all your information confidential. We can help keep you out of traps that will seriously limit your options. We can help get you back on the road to better days.

Ann

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