What happens if you can’t pay your mortgage? I get this question all the time!
Most people will have things happen in life that can prevent them from making their Mortgage payment. I hear it all the time in the field – loss of job, injured and unable to work, death in the family etc. It’s sad and I want to be able to educate homeowners on the options to avoid foreclosure. What is also surprising, is most people who are late on their Mortgage payment don’t know what to do, or what their options are. Over the last several months, I have come across more and more homeowners that don’t know what to do, so they do nothing. Don’t be one of those people because I can assure you there are options. The Lisa Hill Real Estate Team has been helping homeowners in Stockton and surrounding areas know their options when facing foreclosure.
What is considered late?
Late is when you are 15 days late or more on your Mortgage. There is a 5% fee, but this is not reported on your credit report.
When will my Mortgage late payment be reported on my credit report?
If you are 30 days or more late, this will be reported on your credit report as derogatory.
When does the Foreclosure process start?
If you fall 90 days or more behind in your payments, your Mortgage Company can file a Notice of Default (NOD). This is posted at the property, usually on the front door, and is filed at the County and made Public Record. Once this is filed, the Bank has started the foreclosure process.
When can the bank foreclose on my property?
Once you are 120 days late, the bank can foreclose on your home. In California, the property is offered at Public Auction to the highest bidder. The bank can choose to Foreclose and take the property back, or a private investor can buy your home. The banks don’t always sell on the 120th day, but most of the time they do. If it does not sell, the sale date will be postponed and rolled over. Usually 2 weeks to a month and it will repeat until your property is either purchased or the bank forecloses.
Do not let your house go to Foreclosure, you have options, and letting the bank take your property should be the last one on the list. Many don’t realize that values have gone up and although you think you are upside down on your house, you might have equity and get money if you sell your home before the bank forecloses.
What Do I do now?
I offer a free Foreclosure Avoidance Consultation. Email me at email@example.com, call me at 209-910-4171 if you would like to review your options.
- Equity Sale – you might have equity in your home. You can put your home on the market to solicit offers and sell your home quickly and cash out before the bank takes it.
- Short Sale – If you owe more on your home than what it is worth, the bank will often times accept less than what is owed. You can get a Seller Incentive which can go up to $5,000
- Refinance – We have partnered with banks that will refinance your home and bring it current
- Foreclosure – The bank takes your home, or an Investor buys it at the Foreclosure