Louis and Karen Moroz can no longer make the payments on their home. They owe $280,000 on their mortgage and their home was appraised at $195,000. The Morozes decide to just walk away from their home. Suppose that Louis and Karen removed their water heater, kitchen cupboards, and toilets. What can the mortgagee do?

Question

Quizplus · Accepted Answer

When homeowners default on their mortgage and decide to leave their property, removing fixtures such as water heaters, kitchen cupboards, and toilets can be considered vandalism or destruction of property. The mortgagee (the lender) has a security interest in the property, and such actions can lead to legal consequences for the homeowners, including potential criminal charges. Therefore, the mortgagee can report the Morozes to local authorities for prosecution under relevant statutes.

Louis and Karen Moroz Can No Longer Make the Payments