The only recourse a mortgage lender holding a lien against real estate has in the case of default is disclosed in the deed of trust filed when the loan was executed. I would suggest reading this document in full BEFORE you stop making payments if possible. The lender rights as well your rights are explained.
To make is simple, the "mortgage note" will tell you what you owe and promised to repay and the terms of repayment. The "deed of trust" will tell you what happens if you stop making payments.
As a general rule the only actions taking in a default is foreclosure of the property and then judgements for any outstanding monies due. Your state laws will also hold jurisdiction over the lenders collection options.
Answer Submitted on Fri, Dec 19 2008
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