What Happens When you Miss a Mortgage Payment?

Oh no!  You just can’t make another mortgage payment.  You are in over your head.  Now what?

When you are 16 days overdue paying your mortgage, you are “on notice” with the bank.  Your mortgage company will begin contacting you to arrange some payment options to get your loan current.  If the lender does not receive payment after 30 days, your loan becomes delinquent, and your loan is in default.  The credit bureaus will be notified.  At this point, collection attempts begin in earnest.  In Texas, foreclosure proceedings tend to move rather rapidly, especially if you are unresponsive to your lender’s attempts to contact you.

What to do? Call Giraffe Realty

Before the official foreclosure process can begin, the lender is required to mail the borrower a letter of demand.  This letter requires the lender to demand payment for all past due amounts from the borrower within 20 days. If you do not correct the default within those 20 days, the lender will file a notice of sale downtown at the Family Law Courthouse.  This must be done at least 21 days before the house is set to go to auction.  The Foreclosure Auction is held the first Tuesday of the month.  In most instances, the lender buys back the house.

Do you have options when you can’t make a mortgage payment? Of course, you do.  Please contact us to discuss these options with you.  Together, we will work to find a solution to your mortgage problems.