Can you stop paying your mortgage

California has enacted a foreclosure moratorium, which prevents any servicer or lender from pursuing or initiating foreclosure proceedings for a period of 60 days. This was an executive order from the Governor and did not speak to whether it only applies to federally backed mortgages or private mortgages. As a result, you must be careful as loan servicers are not providing any directions in this regard. Before you decide to stop making your loan payments, it is best to get it in writing from your lender on how they will handle your missed payments.

In the media, and even on some bank websites, borrowers were being told that they were granted a 60 to 90 day forbearance period before their next mortgage payments would resume.

However, a borrower must be very careful, as this may still result in a default situation on potential foreclosure or loss of your home. Banks have not been clear as to what options will be available to borrowers as a result of missing mortgage payments. This is the major cautionary issue to be aware of because as some borrowers have received communications that their full three months of payment will be owed when their days is up.

An experienced attorney that understands how to deal with mortgage servicers or understands how to review mortgage-related loss mitigation options is crucial. In the financial crisis, many borrowers were told that they had options.

However, that ended up being the exact opposite of what they were being told, while the banks took size-able bailouts. Speaking with an attorney can help you clear up any confusion, and help you decide if you may safely stop making your mortgage payments. We are a San Diego based real estate law firm. We are conveniently located in downtown on the 33rd floor of Symphony Towers.

Please contact us today for any legal related matter. We assist our clients with litigation, contractual, development, investment, and much more. Skip to main content. Bank accounts and services. How to stop automatic debits from your account Call and write the company Tell the company that you are taking away your permission for the company to take automatic payments out of your bank account.

You can give the order in person, over the phone or in writing. To stop future payments, you might have to send your bank the stop payment order in writing. If your bank asks for a written order, make sure to provide it within 14 days of your oral notification. Be prepared to include a copy of your revocation to the company see step 1 with your written stop-payment order. Don't see what you're looking for?

Search for your question Search for your question. Was this answer helpful to you? It will cost them more before they are through, and it will ruin their credit. Sign into your Account Create an Acccount. Sign up to Receive New Articles. Guiding borrowers to the right decisions Protecting borrowers from mortgage predators. Home Who Are You? View all Article Categories September 17, Borrowers with equity who can't meet their mortgage payments and decide to sell should resist the temptation to stop paying on their mortgage.

I have a lot of equity in the house, however, and the counselor I saw recommended I sell the house and stop paying the mortgage.