A lender can legally start foreclosing on a property as soon as the first missed payment. It usually doesn’t happen that fast since lenders try to avoid foreclosing on properties. They generally proceed in the foreclosure process when they feel they have no other way to protect their investment.
Contact from the Lender
Typically after the first missed payment, the homeowner will receive a phone call and a friendly letter. Sometimes a late fee will be attached to the notice. The second missed payment you will probably receive more phone calls and a less friendly worded letter reminding you to make a payment. When your mortgage reaches the three-month mark with no payment, you will more than likely receive a notice that the lender will be starting the foreclosure process.
Two Types of Foreclosure
The two main types of foreclosure are judicial and nonjudicial by a process called “Power of Sale.” If your state allows power of sale foreclosures, the borrower agrees in the mortgage contract that the lender has the right to sell the property if you default on your payments. These types of foreclosures favor the lender because it is completed quicker than a judicial foreclosure giving you less time to catch up on the loan. Judicial foreclosure, just like it sounds, is through the courts and overseen by a judge.
During all of the proceedings, the homeowner has the right to reinstate the mortgage by bringing the loan current. This right usually expires five days before the sale date.
If you are behind on your mortgage payments and worry you may lose your home, contact a Rio Grande bankruptcy attorney to find out how to get financial relief and keep your home.