Call your lender asap. Good luck.
Home Equity & Home Foreclosure
Not usually, but it depends on how many times you've been one payment behind, or how many times you've asked for assistance during the life of your loan. If this is the first time. Not usually. They are willing to work with clientst hat are willing to work with them and ask for help.
The farther you get behind, the less likely it is that you'll be able to cure the default. My recommendation is to seek help a.s.a.p. Don't be in denial and hope that nothing will happen. The sooner you get help, the better. The worst thing you can do is ignore the situation. It doesn't look like you are ignoring it since you came here asking for advice. Contact your lender's loss mitigation department. Many borrowers are afraid of making that phone call because they think that the lender will not work with them or because they think that if they call the lender will know that they are behind and start foreclosure procedures right away. The truth is that the lenders do not want to have to foreclose because it costs them a lot of money. They also do not want to have to take the property back because that affects their ability to make new loans as they have to have much higher reserves when they take properties back than when they make new loans.
When you deal with the lender, stay calm and be nice. You don't want to burn your bridges. If you don't feel up to the task, seek the help through someone like Heidi. You'll have to sign a letter of authorization as the lenders will not talk to third parties about your loan unless you have authorized it in writing.
Wishing you the very best of luck,
At this point the chance is there, but that's depends on what you do. As Sylvia and Heidi have stated, it takes more than 1 missed payment.
You should call your lender (ASAP) and talk to them and see what they are willing to do as far as a plan to help you get payments back on track.
Work with the lender to correct the problem and don't miss anymore payments, then the threat is over.
It usually takes 3 months of non payments for a lender to start the foreclosure process. The lender will hit you with fees and late penalties. Once the foreclosure process starts you will also get their legal fees tacked on. If you don't think you can catch up, you may want to look into getting help to refinance or sell. Let me know if you have any other questions. I am a licensed loss mitigation consultant and specialize in helping people out of foreclosure situations.
I don't know about Illinois, but in california, there is a set procedures and very strict timeline before they can foreclose on your house; it takes more than missing one payment.
However, this can not be taken easily. If you are one payment behind, and if you are able to, you should call them, explain, hurry up and repay that so your credit will not be affected. If you can not make that payment and future payments for some unforseen reasons, such as hardship - lost of a job, illness, etc - you should also hurry up and talk to your ledner and see if they can make other arrangement to help you through this difficult period.
The lenders would rather work with their borrowers rhan to foreclose on a house as that can be a very expensive process; and for you, if you can work this out with the lender, it's much better than being foreclosed on or have your credit destroyed.
Time is of essence here.