The Length of the Pre-foreclosure Period
If you are unable to make your mortgage payment for several months, your mortgage lender may choose to foreclose on your home. Foreclosure is a legitimate concern, particularly if you will have difficulty making your payments; however, the pre-foreclosure period gives you an opportunity to catch up on your defaulted payments. The length of this period varies by state, but typically lasts about three months.
Other People Are Reading
-
First and Second Months
-
When you miss your first mortgage payment, your lender will typically allow a grace period of about 15 days before assessing a late fee on your account. During the first and second months, you can also expect to receive calls and letters from your mortgage company urging you to catch up your missed payment. If the grace period expires, you will be responsible for any late charge assessed by your lender in addition to your missed payment.
Third Month
-
After you have fallen more than 60 days behind on your mortgage payments, you will enter your third month of delinquency. During the third month, you will typically receive a demand letter from your lender. This letter states the amount of the delinquency and gives you a period of time, usually about 30 days, to pay the delinquent amount. The letter also states that if you do not resolve the delinquency by the specified date, the lender has the right to begin foreclosure proceedings.
-
Fourth Month
-
By the time you miss your fourth payment, the date stated in the demand letter will have passed. If you have not paid the delinquent balance shown on the demand letter or made satisfactory arrangements with your mortgage lender, the lender may initiate foreclosure proceedings.
Considerations
-
Although foreclosure may seem inevitable if you have fallen behind on your payments, your lender may offer several options to help you avoid losing your home. You may qualify for a mortgage modification, which may bring your loan current, reduce your interest rate and make your loan more affordable. Your lender may also agree to a forbearance if your financial difficulties are temporary or an extended repayment plan, in which the lender adds a portion of your delinquent balance to your regular payment for about three to six months. Contact your lender as soon as you realize you will not be able to make your mortgage payments -- staying in touch with your lender can increase the lender's willingness to help you prevent foreclosure.
-
