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What to expect if you cannot pay your mortgage – This timeline comes directly from the Department of Housing and Urban Development, in other words, HUD:
- First month missed payment: The lender will contact the buyer by a letter or phone.
- Second month missed payment: The lender will begin calling to discuss why payments have been missed. At this point, the buyer might be able to make a payment to prevent further acceleration.
- Third month missed payment: The lender will send a “demand letter” stating that the homeowner is a delinquent and has 30 days to pay off the missed mortgage payments. If the buyer doesn’t pay the amount or make an arrangement by the given date, the lender may begin foreclosure proceedings.
- Fourth month missed payment: At this point, the buyer will incur all attorney fees as part of the delinquency.
There are free counseling services: HUD approved housing counseling agencies at 888-995-HOPE.
Please see our recent blog regarding Covid 19 Expanded Options which remain in effect until October 2024 to include a 25% or greater reduction in principal and interest payments, a catch up fund called a standalone claim, no income documentation, waiver of fees/costs and even trial payments in most circumstances. Please don’t feel you are alone, reach out to us if you are in the Tampa Bay area or its surrounding counties, call the hotline above for nationwide assistance. There are plenty of options out there and you should make an informed decision rather than simply be forced out of your home by the servicer in a foreclosure next year. Also, most of these options can be retracted by Congressional action, Executive Order or revised Agency rules and while the deadline is October 2024, some or all could expire earlier. Probably not likely, but you never know.
