How Many Mortgage Payments Can Be Missed Before Foreclosure 5 Comments
The following is a guest post about mortgage. If interested in submitting a guest post please read my guest post policy and then contact me.
For those that have a home and mortgage payments become more and more difficult to get together and pay, you’ll need to look into your options far ahead of time. If you feel that you’re going through hard times, whether it’s become of job loss or just a lot of unforeseen circumstances, you will want to look at how many mortgage payments can be missed before foreclosure. This vital information will help you not only stay calm when financial pressures mount, but could save you when an emergency arises. Just remember, you will have a limit here, so don’t assume that you can just start missing them at will, because that’s not true. The following will explain the issue as a whole.
The First Problem One Will Encounter
First and foremost, you can miss one payment without major incident. However, this is going to put you in a tail spin. Your first missed payment will put you in a payment default status. That means that you will need to notify your lender immediately. Do not wait for them to call you about the payment. Most people get 15 days of grace after the missed date of payment, and this will mark your account in preparation for an additional missed payment.
When you miss a second payment, you may be sent a letter known as a “demand letter”. This will not be a good thing, because this is where the borrower becomes a bit more adamant about payment. You will have around thirty days to make payments.
The 90 Day mark
After no payments have been made for 90 days, or roughly 3 payments missed, you will get a notice of default. This will get placed on the front door of your home. The loan will be handed over for foreclosure at this point and the lender will give the homeowner 90 more days for payment to reinstate the loan. This is crunch time, because more missed payments in this time frame will cause serious issue.
The Trustee’s Sale Notice
After 90 days from the notice of default, you will have to deal with a trustee’s sale notice. The lender will give local media the name of the homeowner and will cause legal property information for sale that will occur down the line.
The Actual Sale
The property will be sold at auction within a shortened amount of time after the print date of the notice of the trustee’s sale. At auction the opening bid will include liens, outstanding payments and much more. The highest bidder will gain the property and will take on immediate hold of the home.
Further Details To Consider
There is a chance that the home will not be sold. If the house becomes bank owned, the lender will have to work on eviction. In essence, if you’re dealing with this issue, you can stay within the home until the local authorities show up, which is usually within a short span of time from the eviction notice. Local law enforcement will come in and force people out and all belongings will be moved to a storage unit and a fee will be charged for removal.
What To Do If You Can’t Pay Your Mortgage
At the end of the day, make sure that you talk to your lender. Do not let too many payments to lapse. If you can’t make one, talk to them, and do not let them out of the loop. Let them know what’s going on, and if you have to restructure payments, get a grace period or work on another plan that can be discussed.
Missing two or more payments will cause serious issue. But it’s when you miss out on three that the ball goes in motion for foreclosure and it can be expedited by some lenders.