Missing Mortgage Payments?

It’s Not Too Late

Wondering what a homeowner should expect when payments are missed? The most important thing to know is that no matter what stage of default a homeowner is in, there are often options to explore before foreclosure. That being said, the sooner a homeowner does something about the situation, the more options there usually are.

First, here’s what a distressed homeowner can generally expect to happen when payments are missed (every lender and loan is a little different):

30 Days Late: The lender will attempt phone contact or send a notice in the mail.

60 Days Late: The lender will attempt to make contact by phone and follow up with another letter in the mail.

90 Days Late: The lender will send a letter demanding all past due amounts within 30 days and start the foreclosure process.

120 Days or More Late: The lender’s attorneys will take over and the homeowner will be responsible for their fees in addition to missed mortgage payments and the loan amount due.

Not late yet, but about to be?

Homeowners that are not late but foresee missing payments should communicate this to their lenders as soon as possible. In the past, many banks wouldn’t work with homeowners unless they were one or more payments behind. Today, many lenders would rather take a proactive approach and limit their losses, so they may be willing to talk with homeowners before a payment is ever missed.

If you or someone you care about is worried about falling behind, you’re not alone, and there’s no judgment here, just options. I can walk you through what a regular sale or a short sale could look like and point you toward the right professionals for legal or lending questions. Reach out whenever you’re ready through reynoldsrealty.com or call/text 941-737-6562. — Linda Reynolds, Reynolds Realty Gulf Coast