Late in mortgage payment – how long can I be late before foreclosure?
Feb 20, 2009 in
Financial and Loan Tips
galenight
I am 30 days late already for my mortgage payment, how long will it take before the lender can start foreclosure?
I am 30 days late already for my mortgage payment, how long will it take before the lender can start foreclosure?
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4 comments
Lisa L on February 23, 2009 at 2:13 pm
Depends on where you live & who the lender is. After 60 days late you will probably get a letter. Any time after that they can start proceedings. Why not sell before you lose it & screw up your credit? Or try to rent it out.
doinou on February 24, 2009 at 2:28 am
It depends on your state. If you have any desire to keep your home, you should stay in touch with your lender. They really don’t want your house. Good luck.
Carla Y on February 24, 2009 at 6:44 pm
You need to contact your lender immediately. Ask for the loss mitigation department. Lenders are required by law to offer many alternatives to foreclosure, but some of the options aren’t available after 60 days. At this stage you can discuss forbearance, repayment, and/ or reinstatement if your financial difficulties are short-term and you want to stay in the home.
If you don’t expect your finances to improve, you may want to put your home on the market before foreclosure begins. If you owe more than it is worth, you may want to discuss a short sale with your lender. This is where they allow you to sell your home for less than the loan amount. You will incur a tax liability for the amount written off. Short sales approval requires that you are at least 2 payments late and that your home should be able to sell within 90 days- often tough in this market.
If your situation if long-term but you want to keep your home, explore loan renegotiation (length, interest rate, fixed vs adjustable) or a partial claim on your FHA mortgage insurance. Partial claims are basically interest free HUD loans to get you caught up. The money is due when you sell or after you’ve paid off your first mortgage. Partial claims are an option if the home is insured and you are 4-12 months late.
If you or your spouse are in the military or your house is in a federally declared disaster area, there are even more programs to help you save your home.
Check out these articles for more info and links to HUD and FHA.
Good luck! Do your research and call your lender immediately!
Dawni Do Right on February 26, 2009 at 10:07 pm
In Washington, although the lender can start the foreclosure process at 90 days delinquent, most of the Notice of Trustee’s Sales I am pulling up are 5 months delinquent. I imagine it’s because the trustee services are back logged.