Unexpected and unplanned events happen in all of our lives. Unfortunately, these events tend to affect us financially. Many homeowners find themselves falling behind on paying their monthly. Have you ever wondered how many mortgage payments can you miss before foreclosure begins? No one ever wants to be in a position where they can potentially lose their home. Continue reading this article to get an idea of how much time you have until the foreclosure process begins and some suggestions to stop foreclosure.
Factors That Affect Foreclosure
The number of mortgage payments you can miss before the foreclosure process begins is dependent upon various factors. There is no single answer to this question.
Mortgage Lender Factors
The primary factor that affects how long you as a borrower can go without paying before being forced into foreclosure are the policies set by your lender. Your lender may be more lenient towards missed payments depending on their financial situation. Sometimes they may forgive an occasional missed payment and may not refer your situation to the housing authorities until 4 or more missed payments. Unfortunately, it is also possible for a lender to beginning foreclosure proceedings as early as 2 missed payments.
Important Note: Although most mortgage lenders and servicers will not place you in foreclosure over one missed payment, you are technically still in breach of your agreement. It is very important to have a conversation with your lender if you know you will be late or miss a payment.
Housing Market Factors
The state of your local housing market is another factor that plays a role in the timing of foreclosure proceedings. If your neighborhood or area has many pending foreclosures, it is likely you will be able to stay in your home longer, as local housing authorities may be backlogged and lacking the resources to process every case immediately. There have been situations where people missed 10 or more monthly payments before being forced into foreclosure and losing their home.
Your mortgage servicer should contact you numerous times to attempt to alleviate the situation. Typically, by the 36th day after your last payment, the lender contacts you by phone. By the 45th day after you miss a payment, your mortgage servicer must contact you in writing via mail and provide information regarding the options available to you.
Typical Mortgage Foreclosure Timeline
Although the specifics of your circumstances and location play a role in the timeline of the foreclosure process, there is a general guideline. No matter how you got behind on payments, lenders and services want to get their money with as little friction as possible. They will do their best to make an arrangement with you for payment, if possible. A 15-day grace period is common. You should be fine is you pay within this timeframe. Things tend to get more complicated after this point. Late fees can be added, and you generally fall into default after the second missed payment. Your mortgage servicer may become sterner and the situation becomes more frightening but you still may be able to reach an agreement with the lender.
At 90 Days Late on Your Mortgage
At this point, if you haven’t come to an agreement with your mortgage lender then you will more than likely receive a letter via mail from them stating that you have 30 days to bring your account up to date. You will need to speak to the lender to stop foreclosure proceedings. They will expect full payment of the money that’s owed, and this may be your final chance to reach an agreement. Once the 30-days has ended and no payment or agreement has been made, the foreclosure starts.
Laws governing foreclosure can vary from state to state. In some states, mortgage lenders must meet with borrowers before they can file for foreclosure. After 3-6 months of delinquency, the lender records a public notice with the County Recorder’s Office, indicating the borrower has defaulted on the mortgage. This is usually called a Notice of Default (NOD) or a lis pendens—Latin for “suit pending.”
Facing Foreclosure?
Are you late on your mortgage payments and facing foreclosure? Foreclosure can be a detriment to your credit score and life. Fortunately, here at Vitality Home Buyers, we specialize in helping homeowners like you avoid foreclosure by providing tailored options for your particular situation. Here are a couple of tips that may help you avoid foreclosure.
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