My question involves a mortgage in the state of: New York (long Island)
Situation: House has been up for sale/short-sale for over 1 year. No missed or late payments. House was primary residence but had to move for work. For 5 years it has been either a rent-to-own or a rental. With current renter, the monthly loss is about 2600 or about 31k per year.
If short sold, or auctioned, I believe the deficiency would be in the range of 60-85k.
I have decided to stop paying the mortgage. Even if I had to pay 1000 per month to pay off the deficiency, I would be better off.
The RE agent and short sale lawyer have advised against stopping mortgage payments, but I have advised them that next month they will be stopped. Obviously they would prefer a short sale no matter how long it takes.
When the house is foreclosed upon, will I have to pay taxes on the deficiency once the house is auctioned?
Do I need a lawyer for court dates and to negotiate for me if they peruse the deficiency? I cant seem to get a lawyer to do this, they make it sound like there is no work to be done. Should I offer to prepay for their services?
If I have to pay some or all the deficiency back, will they force me to sell other property in another state?
Is there anything I should do prior to missing the next payment?