First loan with CALHFA. Second loan with local City (municipal agency). All purchase money loans, thank The Lord.
Missing first payment in August. Stopped our automatic payments to CALHFA. Do not plan to rent the home out as it would violate the terms of our junior loan with the city.
My questions are :
1. How does moving out of the home, prior to foreclosure auction, affect the status of the home as principal residence upon foreclosure ? Can it affect our taxes or the purchase money status of the loans ?
2. How does insurance for a vacant home work ? Since we live in a tricky neighborhood and my car has been vandalized in the past, I want to be very, very cautious. If CALHFA comes around and discovers that our home is semi-vacant or the nosey neighbors tell them they haven't seen or heard us, are they likely to change locks ? So does it just make sense to completely move out and inform the homeowner's insurance company, requesting insurance on a vacant home ? Also, would it actually help to inform CALHFA & our city that we have moved out ? Is that likely to speed up this process ? We are really just worried about keeping the house safe until it is auctioned off, we have vandals as neighbors ! We just want this over and done with, ASAP. Is this move - getting vacant home policy and informing the lenders of the vacant home - advisable ?
3. When do we turn off utilities, water and trash / recycle ?
4. When are collections' activities likely to start in full force ? Are we obligated to give both lenders a forwarding address ? We just don't want collectors harassing us at our new residence.
I read some old posts, and have set up a Google voice account and a PO box address four cities away, but is there anything else I need to do before we walk ?
Please let me know. I am getting more and more nervous as August 1 moves closer and close. Thank you.