How late do you have to be on your mortgage payments before a bank will start foreclosure procedings?

Question:

My sister, a nurse, is off work due to a broken leg and her husband (deadbeat) quit his job just a couple of days after she got hurt and hasn't gotten a new one in the last 5 weeks. She doesn't have sick leave or temporary disability insurance. She missed this month's mortgage payment. She will probably be off work another 4-6 weeks if her leg heals okay. So that means missing at least a second and maybe a third payment. But her doctor worries with the type of fracture she had that it may rebreak after she gets the cast off and tries to walk on it with even a boot. Then he would have to do surgery with plates and pins. She could be off work for up to 3 months more if that happens, which would put her missing almost 6 payments. I don't want her to lose her house, but I don't want to give her any money until she is truly at risk because I don't want her husband to benefit from it.

Answer:
Definitely have her contact her mortgage company. Most mortgage lenders offer different types of assistance for extraordinary circumstances, but the most important thing to do is contact them immediately. There is a good chance that the mortgage lender can place her in a forbearance period where she will not have to make her payment for the next few months and then at the end of the forbearance period there will be a loan modification done to modify the loan due to the missed payments. There are also other programs that lenders offer to make reduced payments, temporarily suspend interest, etc... Call immediately.

A lender can begin foreclosure after the first payment is missed, this is usually called pre-foreclosure. However, most lenders will not begin foreclosure until the mortgage has been 90 days (3 months) past due. The longer she goes without making a payment the more detrimental it is going to be on her credit and such. Best of luck.

Ok heres what to do, don't panic one payment isn't going to do it! However contact the morgage company and see if they have a payment forgivnes plan or if they offer any assistance in certain situations.

generally, at 90 days a bank will start the foreclosure process. They will file les pendens (sp) on her credit and it just gets worse from there.

If you can assist her, do not let he get more than 60 days down in the mortgage.

Hope this helps

Missing 3 payments will start the foreclosure process, at that point it's called a notice of default (NOD)
After about 3 more months, they could foreclose. 100 days.
At that point they will be 6 months behind.

Their credit scores will start going down after the first 30 day late, and get progressively worse from there.
It's not good to pay your mortgage more than 30 days late.
the July payment should be paid in July, not August.

Mortgage lates 30-60-90 days late will kill your credit score and any chance of getting a decent loan for at least 12 months.

There is much more to understand about this, but it isn't good.

I used to be in the collection department. The bank can actually start foreclosure after you miss your first payment. However, typically, they do not start it until you miss 3 payments or you tell them you are unable to make any payments. 3 is not the magic number. If they call you after you miss your first payment and you cannot tell them when you can make the next one, the may give you an extension or start the process then.

You should talk to the bank and see if there is anything they could do. Otherwise, they may want to put their house up for sale if it is going to be 6 months or more. Do they have a 401k plan they can borrower against to make their payments? A relative to borrower from? Do they have equity in their house to borrow against. Just a few options.

Good luck

It usually takes the bank 3-6 months to start the foreclosure process. Your sister may be able to call the bank and have the hold off on starting the foreclosure, or she could try to qualify for some type of hardship program or forbearance agreement.

Have her keep in contact with the lender and inform them of the situation, and request any help that they can provide. They'll probably send her and her husband some documents to fill out in order to apply for some programs. But without any income, they will have a tough time qualifying for anything. The best they might be able to do is have the bank hold off on the foreclosure process for a couple of extra months.

Maybe instead of giving her money to pay her mortgage, you could help her sell that property, move into a smaller house, and start an emergency fund to prevent such devastating consequences when emergencies happen. Unfortunately, life happens, and she should have some cushion that would allow her to live off of savings for at least 2-3 months.

If you don't want to provide help to her deadbeat husband, just give her enough support to take care of herself, but not him. If she wants to stay with him and take care of him, then she can do that on her own. Or even better, he can find some way to pay for his own life.

Good luck.

ForeclosureFish
http://www.foreclosurefish.com/...

How late do you have to be on your mortgage payments before a bank will start foreclosure procedings?

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