Are you wondering how many missed payments before foreclosure occurs?
It happens to the best of us. There are some rare cases where people miss payments while they sit in their houses and plan to let the court system do the work for them. However, the most common situation is that you have to have a lot of leeway before your lender will start the process of foreclosing on you.
Don’t worry. We’ve got you covered. Keep reading to learn everything you need to know about foreclosure timelines.
How Many Missed Payments Before Foreclosure Takes Place?
The number of missed mortgage payments before foreclosure occurs can vary depending on several factors. This includes the lender’s policies, state laws, and the type of mortgage you have.
Generally, the foreclosure process begins after a borrower has missed multiple payments, typically four to six months. The lender can initiate the foreclosure process and put the home up for sale on the open market. Here’s a general timeline of what might happen:
1st Missed Payment
When homeowners are behind on their mortgage payments, the first missed payment can be a worrying experience. Homeowners will receive a notification to make the payment and if it is not received, the lender typically takes note of the occasion.
Many homeowners are able to make up the missed payment without any issues. If a borrower is able to make up for the missed payments, lenders may be willing to provide loan modifications. They may also offer other solutions to help the borrower cover future payments.
2nd Missed Payment
If a homeowner misses two payments they will receive a more serious delinquency notice from the lender. This notice emphasizes the importance of catching up on payments.
Typically, if a homeowner misses two payments or more, the lender is able to begin the foreclosure process. However, there is no hard number of missed payments before the foreclosure occurs. The amount of time before a foreclosure is initiated depends on the lender’s policies and procedures.
Knowing how many missed payments before foreclosure occurs is an important factor in understanding your rights and taking steps to avoid foreclosure.
3rd Missed Payment
Missing a third payment is often considered a point of no return. At this point, the lender may send a “Notice of Default” or “Pre-foreclosure” notice. This officially starts the foreclosure process. The notice will state the amount you need to pay and the timeframe for bringing the mortgage current (usually around 30 days).
If you don’t catch up during this period, the foreclosure process will proceed. If you are in Fremont and facing foreclosure, you may contact a Fremont foreclosure attorney. They can help with foreclosure defense, loan modification, short sale negotiation, and more.
Avoiding Foreclosure Before It Occurs
How many missed payments before foreclosure takes place? The timeline and process can vary greatly depending on the location and unique situation of your loan. It is important to take proactive steps to avoid foreclosure and to understand when it might become a possibility.
If you are facing economic hardship, contact your mortgage lender today to discuss your options and avoid foreclosure.
Did this article help you? If so, take a look at some of our other blog posts for more informative reads.