How Many Mortgage Payments Can Be Missed Before Foreclosure Comments5 Comments


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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.

Author Bio
Kevin Douglas is the Senior Contributor at Finance Foes, a blog dedicated to answering consumer questions regarding money problems such as foreclosure, bankruptcy, and student loan debt.

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By : Adam | 22 Oct 2014
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5 thoughts on “How Many Mortgage Payments Can Be Missed Before Foreclosure

  1. Emily @ Simple Cheap Mom

    Thanks for sharing. I’ve thankfully never learned about these timelines. Three months is not a lot of time. It’s amazing how close so many of us are to losing our homes. We have a big emergency fund that should see us through rough times, but we didn’t build it up over night.

  2. Brock @CleverDude

    When the home actually goes on the auction block is very dependent upon how backed up the banks are at the time….I knew someone that couldn’t afford their home anymore and lived in it for well over a year (payment free) before it finally was auctioned and they got kicked out.

  3. Terry @ How Abraham Lilncoln Used Stories to Touch Hearts, Minds, and Funny Bones


    I liked the way you laid out the foreclosure process in a easy to follow manner. In truth, I never had a clear picture of the procedure until now.

    I also liked your blog. It answers a lot of financial questions in the same clear way.

  4. Cresta

    When going for the purchase of a home loan or a property, it is important to select the right home loan depends on your financial backup and budget. Also, it is important to get ready for the expenses like medical, divorce, home maintenance, etc. from starting stage itself, because knowing these things in advance will definitely assist you to avoid financial and other mortgage related issues in the future.

  5. John @ TractHomes

    That timeline is close to accurate for about 50% of the United States. Some states can process a foreclosure in a month, others can take up to a year to foreclose. Check the statutes for your state to get accurate information regarding the minimum timeline your lender must follow.


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