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.
WHAT ARE THE ALTERNATIVES?
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.
HOW DO I KNOW IF I QUALIFY FOR ANY OF THESE ALTERNATIVES?
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