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What will lender do if we stop paying mortgage

We own a house in North Las Vegas -- my daughther, her husband, and I. I also own a house in Oceanside, California. The Vegas house is upside-down (loan balance is at $265K and FMV is at $130K. If my daughter and son-in-law stop making the mortgage payments, what exactly will the lender do (Chase) to all the owners? We know that Nevada is a "full recourse" state. My daughter has been trying to compromise with Chase for almost a year now, and they have been given the "run-around" with no solution in sight. They have paid responsibly and regularly since the house was bought. My son-in-law has been restationed in England for three years and the house is rented out -- BUT NOT FOR THE FULL MORTGAGE PAYMENT -- and they have to put up $700 extra a month, to fullfill the mortgage payment. My daughter was working but now, in England, she's spending full time with their new baby. A hardship on them. I have been unemployed for almost two years now and working part-time and cannot help them at all. I may be losing my house if I cannot sell it.

Asked on 5:56 am Feb 17th 2012

rvbphilo

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If the mortgage lender does not receive his payments on time, then he will start the foreclosure procedure. If your name is not mentioned on the mortgage docs, then the lender won't come after you to recover the deficient balance. However, you will have to surrender the property to your lender. If your daughter and her husband wants to save the property, then they can apply for a loan modification. This will help them in getting a better payment plan to pay off the mortgage.

Answered on 3:15 am Feb 20th 2012

jameshogg

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The mortgage lender will start the pre-foreclosure process if he does not receive the mortgage payments for 3 months at a stretch. If you're one of the owners, then as James said, you will have to surrender the property to your lender once the foreclosure process is started.

Answered on 10:31 pm Feb 20th 2012

smith.sussane

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