| Typical Foreclosure Timelines |
When you miss your first mortgage payment by one day, you may be involved in the foreclosure process. You need to act quickly, as the process seems to develop a life of its own without your input. Yes, it may seem easier to just let things go if you feel there are no other options available to you, but things will not be easier for you in the long run. Recent statistics indicate that 50% of all home loans are placed into a foreclosure process without any personal contact being made by a borrower. You should know the process in order to prevent it.
The foreclosure timeline may vary depending on where you live, but the following are some basic guidelines of what you can expect with estimated timelines.
1) You have missed your first mortgage payment, you may not face any penalties for up to 16 to 30 days. After 16 to 30 days, late charges—including a possible mortgage late fee—will begin to accumulate and your lender will contact you to determine why you haven’t made your most recent payment.
2) After 30 days, you will be considered to be in default on your home loan. Failure to pay your mortgage after 30 days means your lender may exercise the right to take your home. Most lenders would prefer to not foreclose on your home, and will allow you pay only part of the late payment; others however may demand the entire payment and any fees.
3) 60 days after you have missed your payment, a lender will typically file a “Notice of Default.” Between the 45th to the 60th day you are late on your mortgage payment your lender may send you a letter stating the mortgage terms and inform you that you have 30 days to resolve the unpaid amount. You should expect frequent phone calls from your lender, often offering options to resolve the defaulted payment and/or a loan modification.
4) On the 60th and 90th days, things begin to seriously add up. At this point, a notice of default is sent to you and collection costs are added on top of the other late fees. In addition, your lender will probably turn over the loan to its legal department which will send the documents to an attorney to begin formal foreclosure proceedings against you.
5) Between 150 and 415 days a “Notice of Trustee Sale” will be filed and your home will be scheduled for sale at an auction or foreclosure sale. In this period of time certain requirements must be met as part of this legal proceeding, including the advertisement of the impending foreclosure in local newspapers. You may be given the chance to purchase the property depending on where you live, but most likely you will be forced out of your home by the local sheriff’s department.
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