If a home owner falls behind in their mortgage payments, they can expect lenders to respond in different ways at different times. Here’s a general look at a timeline from late payment to foreclosure.
These timelines are not intended to be all-inclusive, nor are they intended to cover default situations in all states. Home owners are advised to seek professional legal counsel in any default proceeding in the specific sate or county where the house is located.
Day 1
The home owner is unable to make their mortgage payment on the first of the month.
Day 16 to day 30
The lender assesses on late fee on payment.
The mortgage company that processes the home owner’s payments, attempts to make contact with the home owner to find out what happened.
Day 45 to day 60
The mortgage company sends a letter of “demand” or “breach” to the home owner letting them know that the terms of the mortgage have been violated.
The home owner is given 30 days to resolve the situation by bringing the delinquent amount up to date.
Day 90 to day 105
The mortgage company refers the loan to either its foreclosure department or other private firm to start the foreclosure proceedings.
Depending on which state the home is located in, the mortgage company ‘s representative may record any or all of the following. Record a formal notice of foreclosure at the courthouse in the county where the house is located, attend hearings on the case and make the appropriate court filings and publish details of the debt in the local newspaper.
Day 150 to day 415
The house is sold at an auction or foreclosure sale. The wide time range is due to the different requirements of each state.
Home owners in states that use judicial foreclosures or those in which mortgage companies have to reclaim property titles via the court system, can get close to a year to bring their loan current before the sale. Those in non-judicial states may have as little as two months or less.
Day 150 to day 415 or longer
After the sale of the foreclosed home, some states grant borrowers a “redemption period” in which they can repurchase the property. Some states can force consumers out immediately following the auction.