Most homeowners have never had any prior experiences with foreclosure before. It is all new to them and it is easy to get confused with the process. So I laid out the timeline for most foreclosures below. Your foreclosure case may vary, so please consult your lender for more specific timeframes.
There are two primary types of foreclosure procedures, Judicial and Non Judicial. Judicial procedures are followed by states that use mortgages as the security instrument for property loans. Non judicial procedures are used by states that use deeds of trust as the security instrument.
Here is a look at the standard time line.
It's the 30th of the month and you cannot make your mortgage payment: You legally have 30 days past the due date to make your mortgage payment before the lender can mark you down for being late. The grace period is different; it's the time the lender will allow you to make the payment before they assess any late fees to your payment, it is typically 15 days.
30 days late: Late Charges will be assessed to your payment and the lender will usually report the 30 day late payment to the 3 main credit repositories, Equifax, Trans Union and Experian. Technically you are 1 payment behind, but you will need to DOUBLE your next payment if you want to get current on your account. You will also start getting calls from your lender at this point to gently remind you that your late.
60 days late: You will be officially 60 days late if you go another 30 days without making the ENTIRE payment. Yes, you read that correctly. Almost every lender will still consider you to be late on a payment if you do not pay ALL of the principle and interest payment PLUS late fees. You can be $10 short and they will most likely mark your payment as PARTIAL payment and consider it late. At that point, they apply that partial payment to your existing past due amount.
Also, your lender will send you a few nasty letters stating that your 2 payments back, and that you MUST make 3 payments on the next due date, or else they will possibly foreclose on the home.
90 days late: At this point, the lender will send your account to the collections department for further action. Based on what I have seen, this is typically the point of no return for most people. They just can't catch up after it gets to this point. The reason is; the late fees and past due mortgage payments are so deep that the lender will put you on a temporary repayment plan, OF A HIGHER PAYMENT until you catch up. Here's how it works: Let's say your total late payments with penalties and interest is $4,350. They divide that amount by 6 months and ADD that figure to your existing payment. So if your payment was $1,927, add another $725 for a temporary payment of $2,652. (Logically, if you could NOT make the original payment, what makes them think that you can make a higher payment?)
If you still cannot make the payments, the collections department will forward your file to the legal department for an attorney to take a crack at you. The nasty letters, phone calls, threats of homelessness will gain momentum. Also, the legal fees can make up as much as 40% of your total past due amount at this point, but that depends on the lender.
150 days late: The lender will then officially declare you in foreclosure (each lender is different, but most follow the 150 day time frame). They will file a notice of default (NOD) with your local courthouse and publish the details in the local paper. This is also the time that you should receive your notice of SALE DATE from the lender. This is the date that your home will be sold at auction if you cannot take immediate action.
Based on my experience, the bank will NOT kick you out of your home when the home is sold at auction. In fact, the homeowner often has a few weeks before they need to vacate the property.
DESPERATE TIMES CALL FOR DESPERATE MEASURES.
When you read my manual, “How to Stop, Stall or Kill you're Foreclosure", it won't take you long to realize that you can probably handle this situation BY YOURSELF - for less that $50. And you probably don't need to blindly trust in a total stranger & pay them thousands of dollars to help you. Don't get paralyzed by all of the drama around you - you can do this! I have coached homeowners (that you would swear are brain dead) to negotiate a new mortgage. If they can do it- so can you.
In my opinion- If I were facing a foreclosure, I wouldn't rely on the help or mercy of others because there are too many sharks in the water ready to fleece you. I would take some type of positive action myself, & get the process moving. It's the people that curl up & lie on the floor in a ball that get kicked out of their homes. You just need the proper information to kill the foreclosure- that's all. That's what most people don't have-information. They get depressed and start to think that they are in a David VS. Goliath situation & they just throw in the towel. So snap out of it! You're either going to get moving and get this situation taken care of, or you will lose your home! Either way, you need to be proactive and put this manual FIRST on your To Do list.
If you're in foreclosure, time is your enemy and you need to act now. Please visit our web site at http://www.DIYforeclosure.NET for more ethical insight and additional information about handling this issue yourself -without going broke.
Our guide will show you how to save your home from a foreclosure, AND how to get a new loan from your current lender - BY YOURSELF. There is absolutely NO NEED to spend thousands of dollars with a “Foreclosure Rescue" company to negotiate with your lender for you. This can easily be handled by the homeowner. For more information, log onto http://www.DIYforeclosure.NET