Mortgage going up by a thousand dollars. What will my bank do?

I've stopped paying my 2 mortgages because I just can't


afford it anymore since one of them went up by a thousand


dollars. What can I expect my bank to do? I put my house


on the market even though it is ~$80,000.00 less than what


my combined mortgage is. My bank won't try to make me


pay part of the monthly mortgage will they? As I see it, if a partial


payment is the same as no payment as far as my credit


is concerned, then why should I even pay it? All of it


is going to interest. I want to wait it out until I can short


sell my house or foreclose and in the mean time, use the extra money to pay off some debt. Is this strategy sound?Mortgage going up by a thousand dollars. What will my bank do?
That is a disaster strategy. You are willingly ruining your life.





It is not like this just snuck up on you. Refinance or sell.





If you have no intention of doing either, then at least call them and ask for some sort of plan to leave peacefully and not have your credit rating ruined for the next decade.Mortgage going up by a thousand dollars. What will my bank do?
If i were you i would just go in to bankrupt, it will be better then having your house on foreclosure before it sells and thats just gonna get nasty. There are different chapters of brankruptcy, with some you are able to buy a home in 2 years. We do mortgages and it is amazing how many people just do that over and over again.
Your strategy is stupid. Attempting to pay off any kind of debt is better than ignoring the debt all together. You will get foreclosed, the bank will own your house, and you'll be out on the street or living with some friends.





And you can pretty much kiss your credit score goodbye, which means you'll never again have to worry about getting another home or car loan, and any credit cards that you have can now charge you an outrageous annual percentage rate.





So good luck to you! With thinking like that, you're gonna need it!





You could always try to refinance your house, get a 40 yr mortgage, instead of 30, that will lower your payments. Oh wait, you're already behind in your house payments. And a refinance would mean they need to run a credit check on you. Nevermind. Sounds like you shot yourself in the foot without thinking things through first.
Nope.





By not making your payment, or even making an effort to make your payment, you're collecting nines on your credit report.





And, your bank may get frustrated with you and just foreclose on the property before you can sell it.





At that point, it will be a cold day in hell before you'll be able to buy anything on credit for a long time.
No, this is not a sound strategy. The other answers explain why.





The only thing I want to add is that the amount of a ';mortgage'; is the total owed, not the monthly payment. If the mortgage went up by $1000, that is only a few dollars extra to pay each month for however long the mortgage lasts. If it is an extra $1000 per month, then the correct term for what went up $1000 is the ';mortgage payment';.
I'm assuming since the house is listed for $ 80,000 under the balance on the mortgages that you do not have the equity to refinance.


That being the case the best call you can make is to the loss mitigation department of BOTH of your lenders. One may be able to work with you when the other can't and you'll need both of their help.


The results and consequences of not paying and not communicating are always worse than trying to work with them.
Sounds like somebody thought they had a great deal on a ARM loan , or was it interest only ???





The last thing you want to do is try to re-finance for another 30 or 40 years , you are just throwing away more money that you do not have , either talk with the banks and set up the remaining balance to be paid off in 15 years , NEVER pay on a house more than 15 years , all you are doing with a 30 year mortgage is paying them an extra 100 grand or more to let you pay longer ..it is stupid , if the bank won't do it ..say good bye .. chances of re-financing are slim ,and none because they would have to run your now bad credit , and you would have to do the expenses of closing again ...and if you had money to do that you could pay the bill .. either get them to work something out , and when they say ';NO'; talk to a bankruptcy lawyer ...if you wish to keep your house , they will make you sale one to keep the other , but you will be protected ...do not worry about your credit , it is ruined anyway , besides that credit is what caused this problem , right ...
It's not any kind of strategy. Strategy is a way of dealing with challenges. This isn't dealing with them, it's hoping you don't get nailed by them,





First off, CALL THE LENDER, ask for loss mitigation, and see what you can work out.





If you can, make enough of your payments and back payments to stay out of default. If you go into default, not only are you assessed some serious extra fees, but you lose a lot of rights. Furthermore, since it's public record, expect to get less for the sale of your property if they record a default.





Any shortfall is likely to be accompanied by a 1099, reporting income through forgiveness of debt. The rules on this vary from state to state, and are dependent upon your situation. This is taxable as ordinary income. Guess what? Now you have to pay taxes on that $80k (likely more) that the lender lost ($80k is enough to bump most folks tax bracket). Wouldn't you like that number to be less instead of more?





If your agent had any kind of clue about short sales, they would have explained this to you. Since it takes an agent who knows what they're doing to get a short sale approved, find another agent.
Stategy? What strategy? Just ';not paying on my 2 mortgages'; is not a strategy.





In today's environment, you have several options.





1) Contact your bank(s). Let them know what is going on. Record dates and times of all conversations along with the basic conversation and it's resolution.





2) Consider a refi, through the same bank or someone else.





3) If you have selling in mind, as it sounds like you do, banks will SOMETIMES (but not often) ';settle'; for a lower amount upon sale. However, not making any portion of your payments in the interim is not wise.





Bottom line, call your bank first. Be honest. Speak to a supervisor and lay your cards out on the table.





Good luck.
Either you need to start looking to RE-FINANCE or your home will be foreclosed soon. Its not a good idea to let it foreclose. If you work hard to search, you will find a mortgage company who will work with you although you've started a problem by not making the payment. Act quickly, we did, and we were re-financed within weeks.