Can a Bank Foreclose If You are Two Months Behind?

Once you miss a payment with your mortgage lender, you have defaulted on your mortgage loan.

If you are delinquent on your mortgage, your bank or mortgage lender can foreclose on your property. While the lender may wait till you are at least three months delinquent, they can foreclose as soon as you miss one payment. The loan agreement on your mortgage should specify a default clause on when foreclosure can start.

Notice of Foreclosure

Foreclosure is a legal process in which the lender will conduct a series of legal proceedings to take ownership of your property. Generally, you will receive notice of foreclosure by certified mail. You will have a time period, sometimes 30 days, to respond to your local court on the notice of foreclosure.

Foreclosure Process

Depending on the state requirements in which your property is located, foreclosure could take as little as 45 days and as long as six months or more. When your property is sold at auction, your mortgage lender generally is the highest bidder on the property. Your lender will bid the amount you owe for the property so they can resell it for as much as possible to pay your mortgage debt and reduce their losses.

Stop Foreclosure

During the foreclosure process, you may negotiate satisfactory payment arrangements with the mortgage lender. You can ask for a loan modification to lower your payments and stop the foreclosure. You may also opt to refinance or sell your property to stop foreclosure.

References

• Clark & Washington P.C.: How Many Payment Delinquent Must I Be Before My Mortgage Company Starts Foreclosure
• Foreclosure Warehouse: The Process of Foreclosure Filings