How late do you have to be on your mortgage...

[ritzysmom]

...payments before a bank will start foreclosure procedings? My sister, a nurse, is off work due to a broken leg and her husband (deadbeat) quit his job just a couple of days after she got hurt and hasn't gotten a new one in the last 5 weeks. She doesn't have sick leave or temporary disability insurance. She missed this month's mortgage payment. She will probably be off work another 4-6 weeks if her leg heals okay. So that means missing at least a second and maybe a third payment. But her doctor worries with the type of fracture she had that it may rebreak after she gets the cast off and tries to walk on it with even a boot. Then he would have to do surgery with plates and pins. She could be off work for up to 3 months more if that happens, which would put her missing almost 6 payments. I don't want her to lose her house, but I don't want to give her any money until she is truly at risk because I don't want her husband to benefit from it.

[theoutlawmtomsik]

Ok heres what to do, don't panic one payment isn't going to do it! However contact the morgage company and see if they have a payment forgivnes plan or if they offer any assistance in certain situations.

[valstpatrick]

generally, at 90 days a bank will start the foreclosure process. They will file les pendens (sp) on her credit and it just gets worse from there.

If you can assist her, do not let he get more than 60 days down in the mortgage.

Hope this helps

[CommonCents]

Missing 3 payments will start the foreclosure process, at that point it's called a notice of default (NOD)
After about 3 more months, they could foreclose. 100 days.
At that point they will be 6 months behind.

Their credit scores will start going down after the first 30 day late, and get progressively worse from there.
It's not good to pay your mortgage more than 30 days late.
the July payment should be paid in July, not August.

Mortgage lates 30-60-90 days late will kill your credit score and any chance of getting a decent loan for at least 12 months.

There is much more to understand about this, but it isn't good.

[dzwreck]

Definitely have her contact her mortgage company. Most mortgage lenders offer different types of assistance for extraordinary circumstances, but the most important thing to do is contact them immediately. There is a good chance that the mortgage lender can place her in a forbearance period where she will not have to make her payment for the next few months and then at the end of the forbearance period there will be a loan modification done to modify the loan due to the missed payments. There are also other programs that lenders offer to make reduced payments, temporarily suspend interest, etc... Call immediately.

A lender can begin foreclosure after the first payment is missed, this is usually called pre-foreclosure. However, most lenders will not begin foreclosure until the mortgage has been 90 days (3 months) past due. The longer she goes without making a payment the more detrimental it is going to be on her credit and such. Best of luck.

[Corey1023]

Just to clarify a couple of points, whether its a Lis Pendens you are looking out for or a Notice of Default depends on whether or not you reside in a Mortgage state or a Trust Deed State. Mortgage state Attorney's will file a lis pendens as they are required to do a Judicial Foreclosure, whereas in a Trust Deed state they can simply file a public notice (NOD or Notice of Default) and proceed with the sale.

Trust deed foreclosures vary from state to state but generally take around 3-5 months to complete (unless you're in Texas). Judicial foreclosures however can take a very long time start to finish. Sometimes as long as a year, but with the increase in foreclosures they are starting to get a little bit quicker through the process, often though its still longer than a Non Judicial or Trust Deed foreclosure.

I dont want to put too fine a point on it and come across as nit picking others information, however i felt it prudent that you have the right info so you can be on the lookout for the beginning of the process.

Generally speaking what happens is you miss 3 payments or 90 days late, and you will get a Fair Debt Collections Practices Act notice. This is where the Attorney hired to foreclose will give you a notice of your rights under the above mentioned act. He legally has to give you 30 days from that notice. Sometimes they don't, sometimes they go over 30 days, but its safe to say that somewhere around 30 days from that letter they will begin foreclosing. In Utah its almost always 3 missed payments>Fair Debt letter with 30 days> now having missed 4 payments the NOD is filed and they begin the process> They have to wait 3 calendar months (in Utah) and then run an ad in the paper for 3 consecutive weeks (for a total of 90 plus 21 or 111 days total start to finish) advertising the legal information on the auction to be held as well as posting the information in a conspicuous place on the property (usually the front door)

The advice to contact the bank early and let them know is very wise. Unfortunately it doesnt always help, but its absolutely where to start. If you get frustrated and dont know what to do, dont hesitate to call the guys at 877youkeep.com they are outstanding.

Corey Vandenberg
Utah Foreclosure Advocates
801-645-6466