Have you missed your house payment?
Haven't missed a house payment yet, but afraid you
might?
Has your financial situation changed due to a mortgage payment
increase, loss of job, divorce, medical expenses, increase in taxes
or other reasons?
- Is your credit card debt becoming unmanageable?
- Are you using your credit cards to buy groceries?
- Is it becoming difficult to pay all your monthly bills on
time?
If it's becoming harder to make your house payment each
month:
Few people think they will lose their home, they think
they have more time. Here's how it happens. Note: Timeline
varies by state.
- First month missed payment - your lender will
contact you by letter or phone. A housing
counselor can help.
- Second month missed payment - your lender is
likely to begin calling you to discuss why you have not made your
payments. It is important that you take their phone
calls. Talk to your lender and explain your situation and
what you are trying to do to resolve it. At this time, you
still may be able to make one payment to prevent
yourself from falling three months behind. A housing
counselor can help.
- Third month missed payment - after the third
payment is missed, you will receive a letter from you lender
stating the amount you are delinquent, and that you have 30 days to
bring your mortgage current. This is called a "Demand Letter" or
"Notice to Accelerate". If you do not pay the specified amount or
make some type of arrangements by the given date, the lender may
begin foreclosure proceedings. They are unlikely to accept less
than the total due without arrangements being made if you receive
this letter. You still have time to work something
out with your lender. A housing
counselor can still help.
- Fourth month missed payment - now you are
nearing the end of time allowed in your Demand or Notice to
Accelerate Letter. When the 30 days ends, if you have not paid the
full amount or worked our arrangements you will be referred to your
lender's attorneys. You will incur all attorney
fees as part of your delinquency. A housing
counselor can still help you.
- Sheriff's or Public Trustee's Sale - the
attorney will schedule a Sale. This is the actual day of
foreclosure. You may be notified of the date by mail, a
notice is taped to your door, and the sale may be advertised in a
local paper. The time between the Demand or Notice to Accelerate
Letter and the actual Sale varies by state. In some states it can
be as quick as 2-3 months. This is not the move-out date, but the
end is near. You have until the date of sale to make arrangements
with your lender, or pay the total amount owed, including attorney
fees.
- Redemption Period - after the sale date, you
may enter a redemption
period. You will be notified of your time frame on the same
notice that your state uses for your Sheriff's or Public Trustee's
Sale.
Important: Stay in contact with your lender and
get assistance as early as possible. All dates are estimated, and
vary according to your state and your mortgage company.