Someone talking to my wife and I said he heard that if you stop making mortgage payments but are disabled then you can’t get kicked out of your house.
It sounds like total B.S. to me. What’s the straight dope on the matter?
(I don’t need an answer fast, I’m just asking out of curiosity :))
False.
That’s what I thought.
The only grain of truth in it is that a bank may (may!) be hesitant to foreclose on a disabled person, because of fear of bad publicity. Also, there may be government programs that could help the disabled person, which would give the bank more incentive to try to negotiate rather than foreclose.
But these are all choices made at the bank’s option – certainly nothing required.
If it were true banks would be extremely reluctant to give mortgages to disabled people. Why give a loan to someone who has a legal exemption from paying it back? This would be very bad for the disabled, and I would think that disabled advocacy groups would oppose it.