Question about NOT being able to pay the mortgage of rental property... (foreclosure, credit score)
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hi,
i have a rental property with a mortgage of 1700 or so......renters are leaving and i'm having a hard time finding replacements.
i was wondering about the consequences of NOT paying the mortgage until i find another renter.....now, when it'll come down to it, i will almost certainly go ahead and suck it up and pay the damn thing because 1, that's the right thing to do and 2, i'd be afraid of ruining my 800+ score....but i wanted to know what the consequences would be if i didn't pay a month (i suspect that's the max time it'll take to find someone)....
I've seen a 30 day late on a mortgage drop a score by 100 points-let it go 60 and you could be in for a 200 point drop. This will impact your score for at least 2 years.
I agree with dad2jules -- credit scores drop hard and fast for any missed mortgage payments. The way that CC companies are using the reporting bureaus they will also raise rates on cards with the slightest bad news, so that might cost you money very quickly too.
When it comes to non-owner occupied housing the lenders know such places can get in very poor shape very quickly and they are much less likely to delay foreclosure -- the value they can get for some kinds of non-owner occupied units is likley to fall off a cliff it is vacant for too long.
I would be extremely reluctant to miss any mortgage payment and if the property is non-owner occupied I would clean it up and list it for sale ASAP while still pulling together every penny I could to stay current. If you have any equity at all it better to sell for what you owe. Lenders do not accept short sales on non-owner occupied units...
Good Luck!
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