You may be in the middle of a financial hardship. Perhaps it was a job loss and you fear that it may be months before you get another. Maybe there are mounting medical bills and these are draining your savings. It may have been a divorce and suddenly you can’t make ends meet financially.
It’s becoming more and more difficult for you to make your monthly mortgage payment. You’re worried because you see all of these reports on television and articles in the newspaper about the mortgage crisis and foreclosures. Can this happen to you?
When does a mortgage company start to foreclose on a person who has trouble making their mortgage payments? How soon does the person lose their home?
First – Stop that thinking right now. Don’t worry about something that probably won’t happen.
If you haven’t missed a mortgage payment yet, your mortgage company won’t do anything. Let’s say that you can’t make your payment by the first of the month. Your payment is not marked late unless your mortgage company does not receive it by the end of the month. If you make the payment anytime during the month it is due, it is not reported as being late to the credit bureaus. You may have to pay a penalty if it is paid after the 15th of the month.
If you are not able to make a payment during the month in which it is due but are able to make it before the end of the following month along with the payment due that month, you are only one month behind. It will appear on your credit as a late payment. However, your mortgage company will not do anything.
If you are unable to make your mortgage payments two months in a row but then are able to make a payment in the third month, two late payments will appear on your credit report. Typically your mortgage company will not do anything.
In most states mortgage companies don’t start the foreclosure process until a person has not made a payment for three consecutive months. That means that the company has not received a payment typically in 90 to 93 days.
A representative from the mortgage company typically will call the person once a payment is missed. Calls will be made more frequently as time passes without a payment being made. However, the foreclosure process typically does not start until sometime during the fourth month after which the last payment was made.
If you want to keep the process from starting, then make at least one payment before the end of the third month. Continue to make a payment every month after that.
If there is no way to catch up in the near future and you have enough to make a mortgage payment every two months, then make a mortgage payment every other month. You will incur late fees. However, the mortgage company will not start the foreclosure process.
If you fall behind on your mortgage payments, the anxiety and worry you will experience are going to have a negative impact on you and your family. You may be able to juggle the payments to stay ahead of your mortgage company starting the foreclosure process. However, the worry and anxiety are still going to be there. I urge you. Don’t let it get that far.
Before you get into this predicament I highly recommend that you consult a lawyer or an expert in helping people facing foreclosure. Explain your situation to them. They will be able to let you know what can be done. They will also help you understand the steps to take to avoid foreclosure and protect your family.
Much Success,
Mark Elkins
