I am 2 months behind on my mortgage payment. At what point can the bank forclose on my home?

Asked by Mercycares, Saint Paul, MN Sat Feb 6, 2010

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Shane Montoya’s answer
Shane Montoya, Agent, Saint Paul, MN
Wed Nov 30, 2011
It depends on the state. In Minnesota it's 6 months until foreclosure, but then there is another 6 month redemption period, thus a total of 12 months before the bank can actually foreclose.
1 vote
Patti Hessli…, , Woodbury, MN
Fri Mar 26, 2010
In the earlier posts, you have received alot of great information on the process of foreclosure in Minnesota. This process is a state statue; however, when the process starts is a bank policy and I have seen a wide range of parameters as to when it may start. The bank is required to advertise the Sheriff's sale for 6 weeks and provide notice to the homeowner 4 weeks before the sale. Once the sheriff's sale is done, the redemption period begins and is either 6 months or 12 months depending on the amount of equity in the property and the type of property. Banks can reduce the redemption period to 5 weeks for vacant properties.

First and foremost, you are not alone. According to the Distressed Property Institue, 15% of all mortgages are 30+ days late. It is very important for you to be proacactive in resolving this issue. Visit Making Homes Affordable site, (see web reference below), to see if there is a possibility that you will qualify for a loan modification. You will find all the necessary paper work and instructions at this site. Whether you do qualify or not, call your lender and see if you can make arrangements to get through this situation. Also, the state of Minnesota has legislature as to how payment can be made to third parties to assist you in the modificaiton process. It is my understanding that you can only pay a third party for success; so do not pay in advance should you choose to get help from a third party negotiator. These resolutions take time and patience. Pay close attention to the time lines so you have as many options as possible including a short sale.
1 vote
Peter Boyle, , Minneapolis, MN
Mon Feb 8, 2010
It depends on the state in which the property is located, but if you were in Minnesota, a typical timeframe would look like this for a residential primary residence which you have not abandoned:

After the 3rd missed payment the lender must send you a Notice of Delinquency, usually by certified mail or process server, which must be done before they can start the foreclosure process. Typically they can then schedule and begin advertizing the Sherriffs Sale—usually another 3 months. Once the Sherrifs’s Sale takes place there is a 6 month redemption period during which you can only cure the mortgage debt by paying off the entire loan, negotiating a modification with the lender, or effecting a Short Sale on the home. If the bank does not follow propert notification procedures or if you seek relief through the Bankruptcy Court, or if they accept any payments from you, the process could have to be re-started or extended.

Peter Boyle
612 701 6816
1 vote
Bob Movin-On, , Hartford, CT
Mon Feb 8, 2010
Foreclosure is a process, usually after you have missed 3 payments (the third payment is considered late after that month has past so it is really the 4th month) a default notice or foreclosure law suit is filed.
You need to avoid foreclosure it is a life changing event, there are many programs out there to help people having trouble making their payments so get proactive and call your bank now.

What you should do is start talking with your bank about a modification they are mandated by the government to work with people having trouble with their mortgages.

They may suggest you consider a short sale be careful short sale is a form of foreclosure and carries negative credit ramification like foreclosure, so make short sale a last resort.

See the ramifications of short sale and foreclosure below.

If you really want to avoid any form of foreclosure and save your home you need to get serious, it will take a lot of time, energy and you will get frustrated but the results will be worth it. You need to start to be proactive instead of reactive, you need to start a dialog with your lender and you need to document everything you do. It may not seem like it but banks do not want to foreclose and the government has stepped in offering a few different modification packages to the banks. When you call you will be on hold forever (document it), you will need to ask to speek with supervisors, and even administrators (document names and numbers), and you will repeated send documents that will get lost in the shuffle (make copies). In most cases your lender no longer owns your loan ask who owns it and start communicating directly with them instead of a middle man. Try try and try again, I have had foreclosure sales pushed off as many 6 times in one case, twice at 4:00 the day before the auction date. If the bank does start the foreclosure process which they will even if you are working on a solution (it is called covering their A**) you need to show up in court and show the judge proof that you are being proactive and the bank is not cooperating with all that documentation you have accumulated. Judges do no like uncooperative banks.
Modifications very but you should be able to lower your payment by 1/3, have past due amounts and charges eliminated, and/or your interest rate reduced. Most modifications will have a 3 month trial periods prior to making the changes permanent.

Ramifications of Foreclosure, Short Sale or Deed-in-lieu-of-foreclosure

Here are some of the ramifications of foreclosure, short sale or deed-in-lieu-of-foreclosure, there are many more like your job, yes employers are checking credit records these days.

Your credit score will be reduced by 200-400 points, short sale a little less 100-200 points.

All forms of foreclosure stay on your credit report for 10 years.

After you have gone through foreclosure, short sale or deed-in-lieu-of-foreclosure there will be what is known as the "waiting period", this period of time varies for each and can be reduced if you had some type of extenuating circumstances that caused the foreclosure:
Waiting Periods to Buy After Foreclosure
* Buying After a Foreclosure
The waiting period is 5 years up to 7 years.
* Buying After a Foreclosure with Extenuating Circumstances
The waiting period is 3 years up to 7 years.
* Buying After a Deed-in-Lieu of Foreclosure
The waiting period is 4 years up to 7 years.
* Buying After a Deed-in-Lieu of Foreclosure with Extenuating Circumstances
The waiting period is 2 years up to 7 years.
* Buying After a Short Sale
The waiting period was just upped from 2 to 3 years. However, if a seller does not have a 60-day late pay, that seller may immediately buy another home. It's a reason to stay current on your payments while the home is on the market as a short sale.
In addition to the waiting period, most loans require a minimum down payment of 10% and a minimum FICO score of 680. The home purchase must also be the principal place of residence, not a rental nor a vacation home.

Lastly, most loan applications will ask the dreaded question "Have you ever been foreclosed on?" this stays with you for life, many think that because it will not show up on the credit report after 10 years they can answer "no", well lying on a loan application is a felony that carries a major jail term, so be aware.
1 vote
Keith Manson-…, , Milwaukee, WI
Sun Feb 7, 2010
Typically a bank will try to collect for the first 4 months and no payment arrangement or loss mit option is worked out the bank will send it to an attorney before the 5th month on deliquency. The first legal action will be filed within in 30 days and then the normal state foreclosure process takes place.

Good Luck

Keith Manson
First Weber Group
Certified Distressed PRoperty Expert

Metro Milwaukee

1 vote
CCC, Home Owner, San Diego, CA
Sat Feb 6, 2010
Foreclosure happens when the redemtion period is over.
In Minnesota the standard redemtion period is 6 months after Sheriff Sale (So, sheriff Sale is the initiation of the foreclosure).
If mortgage is below 2/3 of the original mortgage redemtion period is 12 months. If the property has 40+ agricultural acres, is 12 months. If the property is vacant, lender -mortgage holder- can short the redemtion period to 5 weeks. Also, the Sheriff sale can be postponed by 5 months but redemtion period is shorten to 5 weeks.

I recommend you to take into consideration a mortgage loan modification.

Do not be afraid to ask questions.

1 vote
Elizabeth Fu…, Agent, Wayzata, MN
Sat Feb 6, 2010
The most important thing to consider is your personal goals. You have many options and may be able to:
1, contact your lender to see how you can modify your loan or other assistance for you offered by them;
2. refinance on your own - this is a valid option depending on the amount of equity you have and other considerations unique to your circumstances;
3. put your home on the market and sell, enabling you and your family to move to another appropriate,m but less costly property;
4. contact a real estate agent and mortgage person to help you define and refine both goals and options. Remember, this will cost you nothing and you will gain information and develop options tailored to you!
Good luck - and remember, something can be done with a little help and some good information.
Don't give up - get going! Liz, real estate agent, mortgage lender and short sale and forclosure resource. 612-986-4105
1 vote
Jeanne Karve…, Home Buyer, Fiesta M/h Estates, Richmond, TX
Mon May 19, 2014
I am going to be 3 months 2 weeks behind on my morg....I am signing a P&S this week.....will most banks hold off...its going to be a cash sale...
0 votes
Tom Durkin -…, , Minnesota
Tue Dec 27, 2011
For answers to some of your question view this Video

0 votes
Keith Manson-…, , Milwaukee, WI
Fri Apr 23, 2010
The foreclosure time line is defined by the mortgage note, investor guidelines and state requirements. Typically the lender will try to collect the payments for 4 months and if no work out is agreed to by the 135th day the bank wll refer the case to a foreclosure attorney to start the foreclosure process. After the case has been referred to the foreclosure attorney the state foreclosure law with stipulate the process.

Keith Manson
First Weber Group
Certified Distressed Property Expert
Metro Milwaukee

0 votes
Patti Ann Ka…, Agent, Coon Rapids, MN
Fri Apr 23, 2010
Whenever they feel like it.

There is a specific process that has specific time limits so they can't just throw you out without notice, but they can start the process whenever they want. http://pattiannkasper.com/foreclosure_part_1_81832.html


There are lots of alternatives and you should avoid foreclosure if at all possible. Check out the Making Home Affordable link above. The Treasury Dept has just changed the program and it is supposed to be better now. You may be eligible for a loan modification and even if you are not eligible, there are other solutions (deed in lieu, short sales, etc) that may be of some benefit to you. You can start the process by visiting the government link above, by speaking with a HUD conselour, or by calling a REALTOR® who is a SFR (Short Sale and Foreclosure Resource).

HUD Housing Counselors: http://www.hud.gov/offices/hsg/sfh/hcc/hcc_home.cfm
0 votes
Richard Alan…, , Riverside County, CA
Wed Mar 17, 2010
The banks are not efficient at this process which makes the answer to your question favorable. You have more time to plan for the best strategy on how to handle this problem. Are you trying to modify your loan? How about short selling it? What about renting it out? There is so much to explore here and if done correctly, you can profit by it. Get a hold of a pro that has been there and done that. This can only help you.
0 votes
, ,
Sat Feb 6, 2010
This also depends on where you live. Some states make the foreclosure process easier than others, so that the process goes more quickly.
Lynn 911, please read your posts before they appear. If you still think that is the way they should be posted, maybe you should take an English class.
0 votes
Dallas Texas, Agent, Dallas, TN
Sat Feb 6, 2010
Up to the bank most way 3 months, and state statues of how proceed with foreclosure process.

Have you considered a short sale? You don't want a foreclosure on your credit report.

If your intent walk on home before it "tanks your credit report" best start looking for new residence any lease could require double to triple rent deposits PLUS 1st months rent paid cash up front prior to move in

0 votes
Lenny Frolov, Agent, Brooklyn Park, MN
Sat Feb 6, 2010
They can start the foreclosure at any point you get 30+ days behind. Typically they wont start it till your 90 days behind.
Web Reference:  http://www.lennyfrolov.com
0 votes
Rachel Luckow, Agent, Savage, MN
Sat Feb 6, 2010
Most banks have a process they follow, but as a general guideline, after 60-90 days late they will send it to the collections dept or their foreclosure department. You will be served with papers somewhere after 90-120 days late that will outline what is owed and what you need to do to become current.

If they are foreclosing by publication, they will publish the notice in a local paper for 6 weeks prior to the actual sheriff's sale. Once the sheriffs sale occurs, you will generally have 6 months to live in the house and try to keep the house by paying off the redemption amount. The only way to keep your home is to pay the redemption amount in full. For example, if your home sold for $100,000 at the sheriff's sale, you need to pay that plus any interest that has accrued.

If you want to try to get a loan modification, it is crucial that you contact your mortgage company or the Hope Now government program before the sheriff sale happens. Your options become much more limited after the sheriff sale.

If you have questions related to selling your home instead of having a foreclosure on your record, please see my FAQ at the link below.
0 votes
Brad Anderson, Agent, Maple Grove, MN
Sat Feb 6, 2010
It depends on the bank, but if you are 2 months behind, I would get caught up if you can. It can take them up to 6-9 months, but they are sometimes faster than that.
0 votes
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