Foreclosure?
Question:
Answer:
If you do not keep your lender informed of your inability to pay your mortgage, then they will put the loan into foreclosure in about 3-5 months after your first missed payment.
By telling the lender right away that you've experienced a hardship and will have trouble making your mortgage payment, they will be more willing to work with you to find options instead of foreclosure. They may be able to modify the terms of the loan so that the missed payments are spread out over the length of the loan, or just place the missed payments on the back of the loan.
Once the home goes into foreclosure, though, it will cost a lot more money to get it out. Legal fees will be added, late charges, and accelerated interest will all show up on the loan. This will make it harder to refinance, since the foreclosed loan will be eating up your equity pretty quickly. Most banks do not refinance loans in foreclosure, as well.
But keep in contact with the lender, and let them know you ran into a hardship, and they may be able to put off putting you into foreclosure for several extra months. That would give you enough time (hopefully) to fix the situation and get back on track.
ForeclosureFish
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It varies but usually after 2 or 3 payments missed you'll start getting calls and letters from your mortgage company asking what the problem is.
They can begin to make foreclosure threats during that time. Check out my full page on foreclosures for all the details.
http://www.thetruthaboutmortgage.com/for...
If you can't make your payments, you need to refinance RIGHT NOW! Call a mortgage company and get it done to lower your payments so you wont lose your house!
The number of months a lender will allow you get behind in your mortgage payment vary from lender to lender. Also it will sometimes depend on if the mortgage is a government mortgage or conventional mortgage.
I have seen some lenders foreclose if you get one month behind and others go for 6-8 months before they even file the Notice Of Default (NOD)
I guess what I am trying to say is that there is no law or anything written that tells lenders when they have to foreclose, each lender has their own policy.
If you are presently behind in your payments you should call your lender and make some type of arrangement to catch up, or pay the back payments and other fees as a different payment while continuing or restarting your mortgage payments
I hope this has been of some use to you, good luck.
"FIGHT ON"
More often than not, as soon as you miss your third payment the foreclosure process will kick into high gear. Depending on the laws of your state, the Sheriff's Sale can be within 21 days after that point. Do not let the process get to that point!
First - call your lender and try to work out a payment plan! They do not want to own your house and will generally work with you to prevent you from losing it, but you have to communicate with them early and often. And the sooner you work something out with them, the easier the plan will be for you to stay on.
Second - try to refinance before your credit gets any worse.
Third - Be realistic - if you don't think you're going to be able to make payments on this house, sell it and find something cheaper until you get back on your feet.
Whatever you do, don't let the foreclosure happen. Not only will you lose your equity, but your credit will take a serious hit. It will be next to impossible for you to buy another house for at least five years.
Best of luck!
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