Preparing for Mortgage Non-Payment

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If you are considering mortgage non-payment, you are going to be making a big decision in your financial life. If you are about to stop paying your mortgage, there are a number of things that you need to consider. Here are the basics of how to prepare for mortgage non-payment.

Money Plans

If you decide to stop paying your mortgage, you are going to be able to save up some money for a few months. You are going to have anywhere from six months to a year before you have to move out for foreclosure. Because of this, you are essentially going to be living rent-free during this period. If you are going to go through the trouble of this process, you need to make sure that you make the most of this savings. Do not simply go out and spend an extra $1000 a month on food or entertainment. You most likely need to save this money so that you will have some cushion when you move out. You might also concentrate on paying down some of your other debts so that you will be able to free up even more money out of your monthly budget. 

Living Arrangements

When you are getting ready to stop paying your mortgage, you also need to make other living arrangements for after you must leave your property. In most cases, you are not going to be able to purchase another house. This means that you should make arrangements to secure a rental property for you and your family. While you do not want to go ahead and move out of your home until you are forced to do so, you might start looking at some of the rental properties that are available. This will give you an idea as to how much you should expect to pay for rent once you do actually move out of your home.


When you decide to go ahead and stop paying your mortgage, you are going to have to be ready for a lot of communication from your lender. They are most likely going to start calling you repeatedly and sending you a lot of mail. In many cases, they will also employ a collection agent to call you as well. You do not have to answer their calls unless you want to. If you decide to talk to someone, explain to them that you cannot afford to pay your mortgage right now.


When you decide not to pay your mortgage, you are going to have to deal with several negative repercussions. Every time that you miss a mortgage payment, it is going to negatively affect your credit. The lender is going to report this to the credit bureaus, and it is going to go on your report. In addition to this, when you go through foreclosure, it is going to stay on your credit report for at least seven years.