Missed Mortgage Payments
Normal circumstances will allow you to miss four payments on your mortgage before foreclosure proceedings begin. However, this depends on many factors including the policies of your lender and the state of the housing market.
Policies of your Lender
Your lender's policies and practices will determine how long you are allowed to go without having to pay before you are forced into foreclosure. Your lender may be more accommodating to missed payments if it has a large portfolio with low-risk loans. This lender may forgive a missed payment occasionally and not report your case to the housing authorities until you miss more payments.
The likelihood of foreclosure proceedings starting even after two missed payments increases if the lender holds a portfolio of high-risk loans. Even if your borrower profile is low-risk, foreclosure proceedings could be initiated by standards due to the default risk overall mortgage pool.
Housing Market Factors
Another factor that influences the timing of foreclosure proceedings is the general condition of your local housing market. You may not be able to stay longer if there are many pending foreclosures in the area. This is because the local housing authorities and courts might be overwhelmed and lack the resources to handle so many cases simultaneously. There have been instances where homeowners have fallen behind on 10 or more monthly payments and then lost their homes.
Your mortgage provider should contact your multiple times to try to resolve the situation. The lender will usually contact you by telephone within 36 days of your last payment. Your mortgage servicer must contact your by phone within 45 days of you missing a payment.
Even though most lenders and services won't start the foreclosure process if you miss a single payment, even missing one mortgage payment can cause you to be in breach of your mortgage agreement. It is important to inform your lender if you will be late or miss a payment.
The Typical Time Frame For Mortgage Foreclosure
Although circumstances and location may affect the timing of mortgage foreclosure, there are some general guidelines that will help you get it done.
The laws governing foreclosure may vary from one state to the next. Some states require that mortgage lenders meet with borrowers before they are allowed to file for foreclosure.
Commonly, there is a 15-day grace period. You can pay your bill within the grace period. Things get complicated if you don't pay or miss a payment. You may be charged late fees and your lender could report you to credit bureaus. This can affect your credit score.
You're considered in default if you miss the second payment. You will likely see a change in your mortgage servicer if you miss the second mortgage payment. The mortgage servicer will likely become more assertive in its dealings with you. Although this can be difficult to handle, you may still be able to reach an agreement with your lender. No matter what the reason for the missed mortgage payment was, mortgage companies will want their money as soon as possible. It's cheaper and more efficient for them. If possible, they would like to work with you on payment arrangements.
If you fail to reach an agreement with your mortgage lender within 90 days and miss three mortgage payments it can be considered a serious problem. The mortgage lender will send you a letter advising that you have 30 days to bring up your account. To avoid foreclosure proceedings, the lender must be contacted if you wish to remain in your home. You can talk to the lender to avoid foreclosure proceedings. They generally expect you to pay allowed money.
After the 30-day period has expired, foreclosure begins if no payment has been made or an agreement reached. At this point, there are four missed monthly mortgage payments.