Law Offices of Steven A. Fink | Steven Alan Fink
You can stop making payments just by not sending a check to the loan company. If you have owned the property for more than 1 year you can legally continue to collect the rent without liability for rent skimming. However, your Deed of Trust might require the rent to be used to pay the mortgage, leading to a default. The lender can initiate foreclosure by giving a Notice of Default upon your failure to pay. However, they generally wait at least 2 months to do so. It will then take at least 4 months minimum to foreclose, and probably a lot longer. You might consider trying a loan modification.
Answer Applies to: California