Owning a home gives people a sense of security and pride. However, they are not truly the independent owners of the property until they have fully paid off their mortgage.
That process often takes 30 years, although some people have shorter repayment cycles for their mortgages, with 15 years being another common option. For as long as there is any remaining interest or principle balance due on the mortgage, the property owner is potentially at risk of foreclosure. A lender can lay claim to a home to recoup losses when the owner defaults on their payments.
How quickly after a missed payment does foreclosure become a concern?
The law restricts foreclosure activity
Lenders cannot simply foreclose because a homeowner missed one payment. They must miss multiple payments back-to-back without paying anything before foreclosure becomes a concern. Typically, it is the fourth missed mortgage payment in a row that places a property owner at risk of foreclosure. After four or more missed payments, the lender can begin the legal process of foreclosure.
They send formal notice, submit paperwork to the courts and begin the process of asserting their right to the property as collateral for the loan. Mistakes in that process can provide the basis for a foreclosure defense strategy. Homeowners may also consider bankruptcy, mortgage modifications or redemption to prevent foreclosure, depending on their current financial circumstances.
Those hoping to avoid foreclosure typically need to act quickly to protect their homes. Reviewing mortgage paperwork and payment history with a residential real estate attorney can help those concerned about foreclosures evaluate their options for defending their homeownership.
