Another working away, CA

[RN009]

Very glad that I have found this site:
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Here is my situation:
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I bought a home in Nov 04 for 230k. Now it’s worth less than half. I had second mortgage but it was already paid off. I have never missed a payment. Because it is located in a very bad neighborhood and bad school district (did do homework before we bought it) and my son starts going school. And I don’t want to rent it out so I have decided of foreclosure. After that we will be moving to a different city, which has good school district and renting a house there. I am going to stop making payment in Nov.

1) What are steps of foreclosing?
2) Should I stop making payment for the first property tax bill, which will be due in December?
3) How about fire insurance?

Thanks

[Evan Bedard]

Hi RN009 welcome and thank you for joining.

1) What are steps of foreclosing?
2) Should I stop making payment for the first property tax bill, which will be due in December?
3) How about fire insurance?

If you are going to walk away from your property you can stop paying all of these. Your lender pay these once you stop making your payments. Also since you are just about to stop paying you probably have at least six months before the property forecloses. You can save quite a significant amount in this period of time..

[RN009]

Thanks for the warm welcome Evan.

The diffrence is I buy fire insurance seperately (not with house payment). The renew day is on Nov 1. If I don't renew the insurance, what if something happens during foreclosure processing. Should I be held liability?

Edit for above post: I didn't do homework when bought the house. As a result (bad neighborhood & school district)

[RN009]

Thank you for a warming welcome.

Another question is if I stop renewal the fire (home) insurance, which will be due in Nov 1 also, something happens to the house. Would I be held liability?

I pay my insurance seperately, not with house payment.

Edit for the post above: I didn't do home work when bought my house