What Happens When You Make No Mortgage Payments?

Paying your monthly mortgage payment on time can sometimes be quite hard, especially with hard economic times. When buying a home, you should be aware of the consequences that arise when you stop making payments on your mortgage. If you happen to make a late payment, it isn’t so bad. The goal is to not miss a payment. If you fall behind on one payment, it will happen to the next and the next. The following is a short outline of what will happen in the event that you stop making mortgage payments.

Alright, so the first of the month has arrived and you don’t have the available funds to pay or your mortgage. At this point, you should be aware of whether you will be getting any money in the next few days. If the scenario happens to be that your pay is coming in at the end of the week, you could try and get a payday loan. A payday loan is very similar to a loan, because you are asking for money and in return you pay them back when you get your pay. These loans are short term and can really be a helping hand at times. However, keep in mind that if you constantly have to get short loans to pay for your mortgage, you need rethink your finances.

If there is no payment made within the first twenty days, the lender will begin to charge you a late fee and a note will be placed in your file. If you have a mortgage specialist working with you, they will contact you to find out what happened. The phone call home has become very important recently, mainly after the many foreclosures. If there is a problem, the lender would call you in to discuss alternative options. But if you say everything is fine, and promise to make payments, they will let it be and put it in your file. The lender will wait for another month to a month and a half to see whether a payment is made.

At the beginning of the second month, the lender will begin to send you letters stating that you have not followed the original terms and conditions of the mortgage agreement. This letter is often known as the letter of demand. This is only the beginning of the serious mortgage dilemma. The lender will still be lenient with you and give you another month to make payments. After the beginning of the third month, your file will be directed towards a foreclosure firm or department.  From this moment on, foreclosure proceedings will begin and you will receive a notice of foreclosure. You will be asked to attend court hearings to resolve the issue or to take alternative steps.

Foreclosure takes anywhere from four to fifteen months, depending on the state or province you live in. The end result is of course; your home will be sold at a foreclosure sale or sometimes at an auction.


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