Can a Mortgage Company Foreclose if you are 30 Days Late?
The process of foreclosure begins when you fall behind on your mortgage payments, but even if your bank notifies you that you are entering the beginning phases of pre-foreclosure, it does not mean you will lose your home. Being 30 days late on a mortgage payment is by no means a guarantee of foreclosure – it’s far from it, in fact.
There are several steps on a lender’s long uphill march to foreclose on your property, and you can put up strong defenses each step of the way to prevent them from achieving their goal.
Let’s walk through a few early phases of pre-foreclosure and what they mean for you as a Florida home owner.
What happens if you miss a payment?
Most mortgage servicers offer a 15-day grace period on late payments. Once you are more than 15 days behind on a payment, late fees will be assessed. If you are 30 or more days late on payments, you are considered delinquent on your loan. Your servicer will report the delinquency to the three main credit bureaus and your credit score will be affected. Each subsequent missed payment (at 60 days late and 90+ days late) will result in further delinquent reports to the credit bureaus.
By no later than the 36th day of delinquency, your lender is required to contact you to discuss loss mitigation options. During this time (or sooner!) you will want to consider what resources are available to you for help. The FDIC offers many consumer resources for homeowners needing mortgage guidance and assistance. We’re also available to help you understand your options for how to avoid a Florida foreclosure.
Being 30 days late on a mortgage payment does not mean you will lose your home to foreclosure, but it does put you on shaky ground. Now is not the time to ignore the problem and hope it goes away. It’s time to act. You have many options and resources available to help you regain solid financial footing with your home, and the sooner you take action with a plan, the better. Once you miss four months of payments, the legal process of foreclosure can begin.
If you’re concerned about a Florida foreclosure, don’t delay in contacting us at Jacobs Legal today for experienced foreclosure advice and defense. There are numerous resources available to help struggling homeowners.