Typical Mortgage Foreclosure Timeline
While circumstances and location can dictate variances in the timeline of mortgage foreclosure, there is a template for how it usually happens:
A 15-day grace period is common. If you pay within this time, you’re all good. If you fail to pay, and then miss another payment, things get more complicated. Late fees can be added, and your lender may report you to the credit bureaus, which will harm your credit score.
Once you miss the second payment, you’re in default. If you miss a second mortgage payment, you’re likely to see a change in the mortgage servicer. It will normally become more assertive in the way it deals with you. This can be a frightening situation to deal with, but you still may be able to reach an agreement with the lender. No matter the circumstances that led to a missed mortgage payment, you should remember that mortgage companies want to get their money without a messy foreclosure process if possible; it’s more cost-effective for them. This means they’d like to make an arrangement with you for payment if possible.
By 90 days, if you don’t come to an agreement with your mortgage lender, and you miss three mortgage payments, it is a serious situation. You will receive a letter from the mortgage lender stating you have 30 more days to bring your account up to date. If you want to stay in your home, you need to speak to the lender in order to try and avoid foreclosure proceedings. They will normally expect full payment of the money that’s owed, but you may still be able to reach a payment arrangement.
Once the 30-day has ended, if there has been no payment made and no agreement reached, foreclosure starts. By this point, you’re at four missed monthly mortgage payments.4
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