How Soon Can a Mortgage Company Foreclose?

Series Summary

A mortgage is the pledging of a property to a lender as a security for a mortgage loan. While a mortgage in itself is not a debt, it is evidence of a debt. It is a transfer of an interest in land, from the owner to the mortgage lender, on the condition that this interest will be returned to the owner of the real estate when the terms of the mortgage have been satisfied or performed. The mortgage is, thus, a security for the loan that the lender makes to the borrower. In most jurisdictions, mortgages are strongly associated with loans secured on real estate. In this free video series on personal finance, an experienced mortgage broker offers information on home loans. Find out how to get the best mortgage interest rate, and learn to shop around for different lenders. Understand how mortgage rates are set, and get tips on refinancing a first and second loan. Maintain a great mortgage rate through the life of the loan using this helpful financial guide.

Video Transcript

"Hi, my name is Matt, I'm with Innovative Financial Group. I had a question post today, "how soon can a lender foreclose on a mortgage?" Let's face it, we're, we're in tough economic times right now and there's a lot of people that are hurting, they've lost their jobs or they've had cuts in pay, or perhaps they may be in an adjustable rate loan that has just adjusted and they're having difficulty making payments. Per your note and mortgage that you signed when you purchased your home, literally the bank can start a foreclosure proceeding once your account goes thirty days past due. That means just one month behind. The trend right now, is the banks are not wanting to foreclose on people, if at all possible. On average, usually the foreclosure process really doesn't start until someone falls about, you know, thirty, sixty, probably about sixty or ninety days late, that's two to three payments delinquent. My best recommendation, is that if you are having difficulties on your loan, contact your bank, let them know what's going on, let them know you're having a financial hardship. There is a big drive right now for the banks to modify mortgages to prevent foreclosures in this country. The last thing you want to do is disregard their calls, disregard their letters, but do keep in touch with the collections department of your bank and prevent that foreclosure from happening. Thanks for asking the question, my name is Matt McKillen with Innovative Financial Group."