Posted on: 30th Nov, 2006 06:14 am
Realisticly, how quick do mortgage companies go into foreclosure on property. I\'ve heard everything from right away, to not until after 90 days.
Hi Jeff,
As you have said there is one payment you have missed, they will not start the foreclosure process.
But you need to contact your lender and tell him about your financial difficulty for which you were not able to pay.
I think they will consider your situation if you get normal with the payments.
As you have said there is one payment you have missed, they will not start the foreclosure process.
But you need to contact your lender and tell him about your financial difficulty for which you were not able to pay.
I think they will consider your situation if you get normal with the payments.
"I've heard everything from right away, to not until after 90 days."
Normally 90 day default would result in the lender going to start the foreclosure proceedings and not before that.
Normally 90 day default would result in the lender going to start the foreclosure proceedings and not before that.
Hi Jeff,
It depends on the lender as to whether he will call a foreclosure on a property at one single missed payment. Actually more than the number of payments, what matters is the time period of maximum 90 days within which a borrower is required to make up for the missed payments.
In general, lenders may not contact a borrower after he misses one payment. They may wait for the borrower to miss the second payment. But most of them do not forget to report the first missed payment, which is a bad sign for the borrower's credit score. This affects the creditworthiness of the borrower.
Missed payments also make the lenders charge a 5% late fee along with each missed payment. So, its better that you call up the lender the very first time you miss your payment, explain your financial situation and whether you require an alternative plan or a suspension of some payments. Lenders are required to shell out several dollars to foreclose and sell your property. So they will try to finds out some other alternative by which a borrower can comfortably pay off the home loan.
Thanks,
Caron.
It depends on the lender as to whether he will call a foreclosure on a property at one single missed payment. Actually more than the number of payments, what matters is the time period of maximum 90 days within which a borrower is required to make up for the missed payments.
In general, lenders may not contact a borrower after he misses one payment. They may wait for the borrower to miss the second payment. But most of them do not forget to report the first missed payment, which is a bad sign for the borrower's credit score. This affects the creditworthiness of the borrower.
Missed payments also make the lenders charge a 5% late fee along with each missed payment. So, its better that you call up the lender the very first time you miss your payment, explain your financial situation and whether you require an alternative plan or a suspension of some payments. Lenders are required to shell out several dollars to foreclose and sell your property. So they will try to finds out some other alternative by which a borrower can comfortably pay off the home loan.
Thanks,
Caron.
Hi Jeff,
You are not clear with your thoughts, will you give more information. So I can help you out in this matter.
You are not clear with your thoughts, will you give more information. So I can help you out in this matter.
90 days is typically the trigger.
90 days is usually the trigger to start the process
