how long do you have before the lender sends a foreclosure notice? No payment for 4,5, or 6 months?

Asked by T Holloman, Grand Prairie, TX Tue Dec 30, 2008

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Frank Zeno, Home Owner, Chicago, IL
Tue Jul 23, 2013
That completely depends on what state you reside in. Certain states are known for being much more aggressive when it comes to foreclosures.

There was a new law recently passed that protects homeowners against predatory lending, and any interest rate over 5.5% is considered predatory. In the event that you are a victim of predatory lending you can actually sue the bank.

I was in the same situation not too long ago and it turned out that I had a predatory loan and was entitled to litigation that allowed me to keep my home and have the loan modified so that it was much more reasonable.

I got help from a national attorney firm and if you are in any of the following situations:

Current or pending foreclosure
Previously denied for a loan modification
Defaulted or deliquent on mortgage payments
Negative equity

they can:

Stop the foreclosure process immediately
Avoid damaging effects of a foreclosure on your credit

They helped me get my foreclosure halted permanently and my loan modified so that it was more affordable. Honestly just give them a call to see what they can help you with: 1 (888) 328-8115
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Truthful Kno…, , Santa Fe, NM
Mon Oct 25, 2010
TRUTHFUL ANSWER: The law varies STATE BY STATE. Yes, they can send early notice, but here in NM, it's five months until they can actually take your house.

Yes, the so called "pro" (real estate agent) says thirty days before they come running to take your house from you. He would love for there to be no defaults because he has an obvious interest in the market. And the "blue states" have more foreclosures than red ones. Give me a break. That should be a good clue as to what kind of biased propaganda and half truths he has to offer.

To be safe, you may want to make a free call to a local attorney that can give you a quick and simple informed answer for you specific area.

If you are having trouble paying your mortgage, I suggest finding out who actually owns your mortgage, not who services it. For example, my mortgage is serviced by Citibank, but owned by Freddie Mac. Citibank of course is not helpful and will send demand letters if you go past 2 months, threatening foreclosure. But it's all a bunch of hot air, and by law they can't touch me until and unless I go past the 6 month point. How did I find this out? Credibility, a HUD certified credit counseling agency is a free service that works on your behalf with Freddie Mac's interests in mind, gave me the facts. They can even put pressure on your mortgage servicer to make sure you loan mod goes through if you qualify for this unprecedented government program. Yes they do ask for your financials, but chances are if you are having trouble making your payments you are already in financial trouble, and discussing it with them can be a great start so you not only know your rights but all of the many options available to you that you may otherwise never know about.
You may be considered for the following:
Special Forbearance. Your lender may be able to arrange a repayment plan based on your financial situation
and may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you have recently experienced a reduction in income or an increase in living expenses. You must furnish information to your lender to show that you would be able to meet the requirements of the new payment plan.
Mortgage Modification. You may be able to refinance the debt and/ or extend the term of your mortgage loan.
This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem and can afford the new payment amount.
Partial Claim. Your lender may be able to work with you to obtain a one-time payment from the FHA-Insurance fund to bring your mortgage current. You may qualify if:
1. Your loan is at least 4 months delinquent but no more than 12 months delinquent;
2. You are able to begin making full mortgage payments. When your lender files a Partial Claim, the U. S.
Department of Housing and Urban Development will pay your lender the amount necessary to bring your
mortgage current. You must execute a Promissory Note, and a Lien will be placed on your property until the
Promissory Note is paid in full. The Promissory Note is interest-free and is due when you pay off the first
mortgage or when you sell the property.
Pre-foreclosure sale. This will allow you to avoid foreclosure by selling your property for an amount less than
the amount necessary to pay off your mortgage loan. You may qualify if:
1. the loan is at least 2 months delinquent;
2. you are able to sell your house within 3 to 5 months; and
3. a new appraisal (that your lender will obtain) shows that the value of your home meets HUD program
Deed-in-lieu of foreclosure. As a last resort, you may be able to voluntarily "give back" your property to the
lender. This won't save your house, but it is not as damaging to your credit rating as a foreclosure.
You can qualify if:
1. you are in default and don't qualify for any of the other options;
2. your attempts at selling the house before foreclosure were unsuccessful; and
3. you don't have another FHA mortgage in default.
Your lender will determine if you qualify for any of the alternatives. A housing counseling agency can also help you determine which, if any, of these options may meet your needs and also assist you in interacting with yourlender.
HOW TO FIND A HUD approved councelor:
or Call 1-800-569-4287
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T.E. & Naima…, Agent, Dallas, TX
Sun Jan 4, 2009
The minimum time it takes is for you to miss a payment by 30 days and receive a notice of default.
They will then notify you that you have a short period of time to clear the default, usually 10 days and at that point you will receive a final notice. If it gets past 45 days, you can expect your default to be posted to the courthouse. The next auction, the first Tuesday of the month, at least 21 days after that posting is when the property would be sold.
So, the minimum amount of time from non-payment (on the first of the month) until foreclosure is about 92 days. The maximum depends on bank policies and how backlogged they are with other matters, and whether you have contacted them about taking other steps to stay the foreclosure.

Most banks will try to phone you or email you after 15 days late. They will also post a letter by mail. If you talk to them prior to the notice of foreclosure and explain your situation, they may grant a forebearance to give you more time to come up with the money. If the situation is dire and a forebearance will not work, then they will discuss having you sell the property to someone else. This is the time to consider the market price versus what you owe.

If you owe a lot more than the market price is, which in the Dallas market happens but is not necessarily the case, consult your Realtor about how much it should sell for as a short sale. The shortage is the difference between what you would receive at the closing table and what is owed to the bank. If you owe $100,000 and it sells for $108,000 with $9,700 in closing costs, you'll be short $1,700. You would need authorization from the bank to sell the house short by $1,700 (they wouldn't receive the whole loan balance).

Some houses sell in pre-foreclosure not at a loss to the lender, though. Since the average Dallas house sells for 1% less than it did last year, your odds are good at receiving close to full value. If you have deferred maintenance items, like painting, carpet, repairs and so on, you will need to account for these in the price in order to stay competitive and sell the house.

On the timeline you would be only about 30 days late when you asked your mortgage lender for your options. A default notice will still be sent, but because they are not in the business of taking real estate back and selling it, they will entertain your alternative proposals, such as selling it short of the mortgage balance, over the next few months.

At some point, perhaps 4 months late, they will make a judgment about whether you are pricing it correctly, whether offers are coming in and whether they should just foreclose on the property. Can it go 5 or 6 months? Yes. These days lenders are snowed under with millions of bad loans from all over, but primarily California and Nevada, where we are. Lenders with national scope see them everywhere. Basically, any Red States had fewer foreclosures than the Blue States -- so your lender's outlook and backlog may be different depending on whether he services Red or Blue States or both.

It is important to communicate with the lender about your problems and how you plan to deal with them, prior to getting a notice of foreclosure.
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Bruce Lynn, Agent, Coppell, TX
Tue Dec 30, 2008

You never know. I've seen some foreclose pretty fast...if you are not calling or working them they might go start to finish about 60-90days with no payments to preserve the asset as much as they can. Others seem to be so overwhelmed it might go longer. It is much better to be proactive though.
The best thing to do is try to work out a payment plan if you want to stay in the house, but had an unusual circumstance, like a job change or illness. Call your lender and negotiate. If you would rather downsize, not stay in the house, or you don't foresee your financial situation improving, try to list the house and get it sold, even if it means taking a short sale...(selling for less than you owe).
In my opinion you want to do everything you can to avoid foreclosure if you can.
Please call me if I can help you in any way.
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Dallas Texas, Agent, Dallas, TN
Tue Dec 30, 2008
Most instances lender will send a notice to property owner mailing address within 90 days of non payment of mortgage. Marjority of lenders have "freeze" on foreclosures during holidays Jan will agreesively move forward on foreclosure. Lenders require hardship package completed work with owner many families take approach do nothing when in fact become active saving your home working together mortgage company.

Your lender may allow you stay on property for short sale, happy to assist.

Contact my office
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