What happens if I leave my house and mortgage behind?

Full question:

I am going to be retired next year, my monthly income will be $762.00 and my mortgage $1,623.00. I owe $260,000 for the house but the house's value is $120,000 now. My plan is to leave this country because I will not be able to support this payment. What consequence can i face if I just leave the house? Can I lose all credit cards and credits?

• Category: Real Property
• Subcategory: Foreclosure
• Date: 04/07/2025
• State: Florida

Answer:

If you leave your house and stop making mortgage payments, you may face several consequences:

1. **Mortgage Liability**: You remain liable for the mortgage payments even if you leave the property. If you stop paying, the lender can initiate foreclosure proceedings.

2. **Foreclosure Impact**: Foreclosure is a legal process where the lender takes possession of the property due to non-payment. This event is highly damaging to your credit report and can remain for at least seven years.

3. **Deficiency Judgment**: If your house sells for less than what you owe on the mortgage, the lender in Florida can pursue a deficiency judgment against you for the remaining balance (Fla. Stat. § 702.06).

4. **Credit Card Consequences**: Failing to pay your mortgage and other debts can lead to a significant drop in your credit score, potentially resulting in the loss of credit cards and other credit options.

5. **Property Taxes and HOA Fees**: You are still responsible for property taxes and any homeowners association fees. Failure to pay these can also lead to liens against the property.

6. **Bankruptcy Consideration**: If your financial situation is dire, you may want to explore bankruptcy as an option. However, this is a personal decision that requires careful consideration of alternatives.

It's advisable to communicate with your creditors to explore potential options for modifying your payment terms before making any decisions.