Q: What can I expect if I start missing my mortgage payments?
A: The most important thing to know is that no matter what stage of default a homeowner is in, there is almost always a way to avoid foreclosure. That being said, the quicker a homeowner does something about the situation, the less challenging it will be to resolve.
First, here’s what a distressed homeowner should expect to happen when payments are missed:
30 Days Late: The lender will attempt phone contact or send a notice in the mail.
60 Days Late: The lender will attempt to make contact by phone and follow up with another letter in the mail.
90 Days Late: The lender will send a letter demanding all past due amounts within 30 days and start the foreclosure process.
120 Days or More Late: The lender’s attorneys will take over and the homeowner will be responsible for their fees in addition to missed mortgage payments and the loan amount due.
If you’re not late but about to be:
In light of the mortgage crisis, most lenders who would rather take a proactive stance and decrease their loan losses. They are more willing than ever to work with homeowners to avoid being late. However, please note that the lender becomes a debt collector when you become delinquent. For that reason, we do not recommend you contact the bank without the presence of an advocate, a short sale specialist. If the lender is a debt collector, they can and will use any information collected from you for the purposes of collecting on the money they’ve loaned you.
If you are visiting my website, you or someone you care about may miss mortgage payments in the near future. I can help navigate the process and put you back on a path to financial stability. Contact me today and alleviate the stress that comes with unaffordable mortgage payments.