How To Live Mortgage Free For Up To Three Years

Tyler Durden's picture

Simple: just don't pay the mortgage. Because here is what happens next: shortly thereafter foreclosure proceedings will begin and at some point, far in the distant future, the bank will finally complete the foreclosure process, claiming the property and putting it on the block with intent to resell (or simply raze it). How far in the future? According to RealtyTrac, the average duration of the foreclosure process for zombie foreclosures is an average of a record 1,031 days. Or just shy of 3 years.

Which means that all one has to do to live in a house which is in ownership limbo for over 1000 days, is to stop paying, pretend to vacate, then quietly sneak back and squat there until such time as the bank finally reclaims it. Which for those living in Arkansas, Hawaii, Florida, Nevada and New York is after 1128, 1112, 1095, 1055, and 1037 days, respectively.

As for such trivial things as one's credit rating - don't worry. Remember: Wells Fargo, desperate to push its mortgage origination business, is now rerunning the last housing bubble and will lend anything to anyone with a pulse, completely oblivious if one's FICO score is triple, double or single digits. It's just one of countless others desperate to find anyone to lend to in the New Normal.

Here is the breakdown of how long in the foreclosure process zombie properties remain in select states.

Source: RealtyTrac

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Bunga Bunga's picture

Finally, socialism! Well done USA.

JoeSexPack's picture

Appraised Mr. Shapiro's 4000 sf house in Beverly Hills 3x in 4 years.


Not one payment made in that time. Same in Malibu, Bel Air, etc.


Nice places to live...for free.

Groundhog Day's picture

It's only 1000 days if itis negative equity.  If the owner has any equity or is breakeven, the Banks will have you out in a very short time period 

detached.amusement's picture

Dingdingding, winner right here.  One buddy of mine, severely delinquent, way over LTV...didnt pay for 3 years.  The bank finally foreclosed on him last month.  He lived rent free for more than 2 and a half years, I think all he paid was...a halfass lawyer's retainer - whose advice to him was just that - if you cant pay your mortgage, just stop paying it altogether.  (unfortunately, that dumbasses' "savings" went up his nose, which was how the foreclosure started in the first place...)


Contrast to another friend of mine who only had 25k left to pay on his house - he had a rough couple of months, and THE SECOND MONTH the bank had already started foreclosure processing and threats, harassment.  Had to have a lawyer call and threaten them in order to get everything straightened out, they were HELLBENT on foreclosing that as soon as possible!!!

lordbyroniv's picture

My sister in law....the stupid fuck face cunt hasn't paid her mortgage since 2008.  The mortgagor is Bank of America.

I think those fucking idiots at BAC dont even have the note.  Thats 6 fucking years  [initiated foreclosure but BAC is not following through]!!!!

Oh,....and I, a responsible moron, apparently was stupid and have been renting for last 6 years at a cost of $1000 a month.






cossack55's picture

Apparently you missed the memo back in 08'.

Mercury's picture

Your sister-in-law just called in.

She said: "I'm sorry...who's the stupid fuck?"

CrashisOptimistic's picture

I can trump that stupidity.  I paid off my mortgage. 

Now I get to own a depreciating asset outright.

DoChenRollingBearing's picture

Same boat, we owe no money on the condo.

A Nanny Moose's picture

Look at it this way. Renting your depreciating asset from government, is probably better then renting it from government and paying interest on a loan, to a bank that you bailed out 5 years ago.

Just sayin'

Mercury's picture
How To Live Mortgage Free For Up To Three Years


Actually it sounds like they're defining "zombie foreclosures" as owner vacated properties.

But still, so much for unclogging the RRE market.

Maybe foreclosures starts are at an eight year low all of the sudden because banks now realize that foreclosing doesn't really advance the ball...

monad's picture

A corporation doesn't have a pulse. 

hwwesq3's picture

Maybe a corporation doesn't have a pulse, but it has religious rights! (5-4, that is)

HyperinflatmyNutts's picture

Thatz great it will let me Stack the rent money for 3 years. Then I can buy the house for 1000oz of Silver Bitches!!! 

youngman's picture

at the same time you can get a student loan...

CrashisOptimistic's picture

One does wonder if student loan money is getting into no money down rental real estate.

Or derivatives trading.

mydogisprettierthanyou's picture

If you like your house.....

Billy Sol Estes's picture

Then squat in your neighbors because chances are you live in model homes and they're all the same anyways.

mumbo_jumbo's picture

i personally know someone who didn't make a mortgage payment for 48 months....and yet somehow the property taxes always got paid.

the funny part is they didn't save a fucking dime........dumbasses!!

Major Malfunction's picture

Save for what? The ""Future""??  Riiiight...

JuliaS's picture

Good thing you brought up taxes. Quit paying mortgage and they'll lazily evict you 3 years later. Stop paying taxes and they'll have you out in hadcuffs the next day... shot in the leg for good measure.

CrashisOptimistic's picture

What does save mean?

I will tell you what I see all over Colorado -- boats parked in yards.  Snowmobiles parked in yards.  Old cars with hoods up.  Their bank acct says they aren't saving, but they have a lot of stuff.

Hell, I know one house where the only thing occuppied is the garage -- by a machine shop.  Some guy is running his business out of a residential zoned garage.

This is a lot like farmers.  All surveys of farmers say they don't make any money.  But they have 100's of thousands of dollars of tractors and silos and disc equipment and all kinds of other "things" that are GAAP "costs" and deduct off of revenue, and it looks like they aren't saving (or making) money.

But calories come out of the ground every year and get sold to someone and they seem to go on vacation to Hawaii -- for farming seminars -- each year.

Fix It Again Timmy's picture

The banks certainly have an ALL or NOTHING attitude and nothing is generally what they end up with.....A little flexibility here, please........

cossack55's picture

Fuck the banks and the fractional reserve lending horse they rode in on.

Billy Sol Estes's picture

Getting shit done in Texas, thanks Cuntservative Rick Perry.

Phil Free's picture

Yeah, apparently no thanks to you.

waterhorse's picture

"in the distant future, the bank will finally complete the foreclosure process, claiming the property..."


Let me make a minor correction to that sentence, if I may:  " the distant future, the bank will finally complete the foreclosure processes utilizing robo-fraud, robo-perjury and robo-theft, claiming the property which it doesn't legally own..."

This is Linda Green and I approved the above statement.

Seasmoke's picture

Correct. I wish more people would understand this. 

Wilcox1's picture

Do the property taxes continue to build up if payments aren't being made? Does the subsequent buyer of the forclosure pay the built up taxes? What happens to the back taxes if the property is razed?

Phil Free's picture

Do the property taxes continue to build up if payments aren't being made?

Yes. If the taxes continue to not be paid, the taxing entity (local/state/federal) can drop a lien on the property - and then have the property sold to cover said taxes.

> Does the subsequent buyer of the forclosure pay the built up taxes?

No, because by the time a buyer will be in a position to purchase the house, there (normally) wouldn't be any built up taxes. The local/state/federal entity will be extracting the $$ they want for taxes, from the sale. If the foreclosed-on is trying to sell, and does not yet have any property liens, the seller can negotiate with the buyer who will pay. If the foreclosed-on is trying to sell, but also has a property lien -- nope. Can't sell, can't buy. All liens must be cleared before the house title can be transferred in a sale. 

> What happens to the back taxes if the property is razed?

They'd get paid. Who's doing the razing? If developer, they paid the state to purchase the property. If state -- they would get $$ after selling the now-cleared property..

Greenskeeper_Carl's picture

awfully tempting to live mortgage free for a couple years. I know a guy doing it. isnt paying 600k for a house thats now worth less than 300. been waiting almost 3 years in south florida, and the bank is just now taking the house

Miffed Microbiologist's picture

I think this is the key. I would never do this on our house. We carry 160k mortgage on our home in an area that is having homes move quickly at 600k. I'm sure the bank is praying we miss one payment.


The worst trader's picture

If I never read the words STACK or BITCHEZ agin it will be too soon. By the way I'm pretty sure people are living in homes  for free longer than that.

HisNameIsRP's picture

Click here to learn one weird trick to get people to stop typing stack and bitchez

F.A. Hayek's picture

Are you allowed to throw parties while squatting in these foreclosed-upon homes?

scraping_by's picture

Squatters in foreclosed houses are actually doing the banks a great favor. When the bank has the collateral, it's much harder to maintain the fiction of bubble-top values they have on their balance sheets.

As long as the homeowner maintains the fantasy, the banks don't have to recognize the loss. As close to honor among thieves as you'll find.

CrashisOptimistic's picture

Another ugly little game played is the owner doesn't pay mortgage for 2 years.  He is 2 years delinquent and the mortgage is reported as such.

Then the bank says  . . hey owner, we'll change your terms.  Your rate is cut and your new payment is 80% of what it used to be -- a 20% cut.  Costs you nothing, all you have to do is agree.  The owner shrugs and agrees.

The owner then CONTINUES to pay NOTHING.  The bank gets to say, hey, this guy is delinquent, but it's a new delinquency.  The old mortgage gets declared no longer delinquent and that 2 year time annotation is deleted.  It looks to the world like someone caught up on those payments.  The new loan looks like it's just a bit past due.

Roger Shermanator's picture

So it turns out that the lady who said that Obama was going to pay her mortgage for her was correct.  This may be the only campaign promise that Obomba has kept.

HisNameIsRP's picture

Yep I was in line behind her today at 7-11 she was buying cigs with her snap card

RaceToTheBottom's picture

Accounting is helping maintain the fantasy. 

Mark To WET DREAM Accounting removes the business pressure that otherwise would have forced banks to foreclose.

Hubbs's picture

Having paid off my mortage in full for a house 680 miles away ( my relocation thanks to some arrogant fat bitch hospital CEO who mismanaged the hospital In EC,  NC, and finally terminated too late) I feel like such a chump.

Squatters rule!

SilverIsMoney's picture

I work as a title examiner for a living and can confirm the time table as correct but what they fail to mention is if youre blantantly not paying it you will get a judgment filed agaist you for the remainder of the unpaid mtg loan. That will follow you for at least 7 years anytime you try to buy anything and will ruin your credit forever.

waterhorse's picture

Depends on if you are in a judicial or nonjudicial state and if there is a "one action rule" in place, as in California.  If they foreclose nonjudicially they can't come after you for the remainder of the unpaid loan.  One bite at the apple and that's it for the banksters.  Can't have it both ways.   Thank goodness SOME states care about the little folks rather than worshipping at the altar of that goddamned theiving wealth-extracting parasite bankster trash (although I'm sure the bankster lobbysists will insist on closing this "loophole" soon - can't have the peasants going "unpunished") 

Phil Free's picture

There are two types of foreclosures -- judicial and nonjudicial. A judicial foreclosure must go through the court system.
A nonjudicial foreclosure does not.
Some states require that all foreclosures be judicial. Others set forth procedures for nonjudicial foreclosures.
This is significant.
When you take out a loan in a nonjudicial foreclosure state, you sign a deed of trust (the mortgage), which will typically contain a Power of Sale clause. If you have a power of sale provision in your mortgage contract, the lender can foreclose without going to court. BOOM!
Nonjudicial foreclosures typically only take (no more than) a few months to complete. Some states are crazy fast. In Georgia, a nonjudicial foreclosure can be wrapped in as little as 37 days. In Michigan, around 60 days.
Judicial foreclosure States (slow!):
Connecticut, Delaware, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, New Jersey, New Mexico*, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, Vermont, and Wisconsin
   (*New Mexico’s Deed of Trust Act was amended in 2006 to remove the prohibition on powers of sale in residential deeds of trust. As a result, a nonjudicial foreclosure process may be used for post-2006 residential loans, though this isn't widespread (yet).)
Nonjudicial foreclosure states (fast!):
Alabama, Alaska, Arizona, Arkansas, California, Colorado**, District of Columbia, Georgia, Idaho, Maryland**, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, North Carolina, Oregon, Rhode Island, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, and Wyoming
   (**Nonjudicial with court supervision.)(I'm not quite sure how they're defining this..)

zanez's picture

FWIW: I'm in MN, a 'fast' state, am approaching 6 months since I have made a payment, TBTF bank says no foreclosure proceedings started yet. They have a mortgage modification application in progress, waiting on underwriting dept. Talked to rep. last night. Were I to not pay anything more, at least 9 or 10 months will have passed with no payment before Sheriff comes. Probably $20-40K underwater.

Ban KKiller's picture

I am living in my house for free paying my taxes and insurance. I have not made a payment in almost three years. Did they send the foreclosure papers? Sure and I counter sued for summary judgment against them for submitting fraudulent documents. Asked for hearing as I love to attack the banksters. No hearing. Gee, wonder why. Meanwhile I submitted discovery on them and...yes, I know this sounds just plain stupid but consider who I am dealng with...idiot minions of a souless beast. In the discovery they are now claiming that the servicer, infamous criminals Nationstar Mortgage, LLC, holds the note and mortgage NOT the plaintiff. So that means they, the original plaintiff, First Horizon, does not want to answer my charges wherein I asked for sanctions as they KNEW they were submitting a forged document. First Horizon will duck out. 

Now, like most cases, the Plaintiff claims to only be the holder. Read your state's Uniform Commecial Code Article 3 Negotiable instruments. Who has the right to enforce a note? Sure, the holder., when, why, who, where did they become the holder? Especially when they say, in discovery etc., that the OWNER is Freddie Mac? So does the "holder" of the note have ALL the rights? Again UCC says if you don't have all the rights you have NONE of the rights. So a mortgage with no way to collect on it. Wall Street GREED, THANK YOU. Also, usually, the new plaintiff is not even named on the note...they know filing in the endorsement line will really fuck them up as then we can ask how THAT happened!

Thanks for listening. Not my fault the banksters did not use correct chain of title with my mortgage/note. Too bad I can read SEC.GOV, and all the other great anti bank sites. 

So I am doing my part to game the system. I need two more years of free rent to get all the FRNs I put into down payment and payments but I really think I will win in court as the plaintiff is caught big time hence no court date, get it? Let me go while foreclosing on the folks that project their honesty on the banks thereby believing the banks lies. Banks lie? ZH!

I stopped paying on my home when I could not get the debt validated. Plenty of money, job.  You sending me a letter that says "trust us, we are the bank, you signed a note, etc.," is NOT proof of ownership or the right to enforce. I had to take that step, do I keep paying a debt that can't be answered? Not after I did my homework.

Again the banksters and their attorneys are not prepared for a fight in many ways least of which they are not that bright. Dim really. With no debt I don't have to work so much and have time to fight the banksters. What else pays me as well as a "free" home. How will this end? With a free house...yeah, I know you don't hear that in the MSM. For a reason! me a deadbeat or mooch or smart enough not to pay a debt that can not be enforced. I don't care about the morality...I leave that to Wall Street. 

Hohum's picture

In Colorado, a district court judge must sign an order authorizing sale.  It's mostly a rubber stamp with few borrower defenses.

Phil Free's picture

P.S. -- regarding what you're calling a "one action rule", as in California -- California is one of the few states that has this protection.  

Even in a Short Sale, the difference between what you owed the bank, and what you were able to sell the house for, is called the "deficiency" -- if you owed $200,000 on the house, but they were able to sell the house for $80,000, the deficiency is $120,000 -- and in most states, the bank can legally come after you for the $120,000, if it is so inclined.

(I have working experience with Georgia -- although deficiency judgements are legal in Georgia, they aren't sought after. After I was able to recently get out from under my More-Than-50%-Underwater house via a short sale, my lender could have chased after me for an additional $124,000.  Did they? No. They knew what was up with 'diminishing returns', blood from a turnip, and all that. They were lucky to get what they got, and they knew it -- just wrote the rest off, and kept on going. A real estate agent friend of mine told me that in over 20 years of selling these things, she's never had any bank go after someone for a deficiency.. but that's Georgia. Your Mileage May Vary.)

"Whether banks can and will pursue deficiency judgments depends on many factors, including what state the borrower lives in and whether there's a second mortgage or other liens. But if borrowers ignore the possibility of deficiencies, it could haunt them.

"Once they have a judgment, they can pursue you anywhere," said Richard Zaretsky, a real estate attorney in West Palm Beach, Fla. "They can ask for financial records, have your wages garnished and, if you fail to respond, a judge can put you in jail."

In the case of foreclosure, lenders can pursue deficiencies in more than 30 states (including Florida, New York, and Texas).

Some states, such as California, are "non-recourse" and don't allow deficiency judgments. But, even there, if the original loan was refinanced, some or all of it may be subject to claims."