The foreclosure process does not happen in the blink of an eye. It is actually a process that can take several months to complete. Although the exact time frame differs from state to state there are some federal rules about how many payments you miss before foreclosure becomes imminent.
- Missed Payment 1- your mortgage holder will notify you that your payment is delinquent
- Missed Payment 2- your lender will get more aggressive about contacting you about your missed payments, most probably on the phone. Take their phone call, as you may be able to negotiate a solution yourself
- Missed Payment 3- the lender will send you a letter with the total amount pass due and you will receive your official 30 day warning shot to pay up. If you ignore this notice to accelerate (aka demand letter) the wheels of foreclosure may start moving
- Missed Payment 4- your time is coming near an end and if you do not pay up the amount pass due you will be passed onto the legal team of your lender
If at that point you have not taken any steps to negotiate payments or paid of your debt a public trustee's sale is looming on the horizon. You can still pay off your debt by the time of the sale (which is the official foreclosure) if not you will become another grim statistic.
During any of the missed payments you should contact a HUD housing counselor as they can help you navigate the whole process. In many cases they can also help you avoid the unpleasant situation altogether. No one wants to loose their home, as it is the biggest sense of security American?s can purchase for them. Additionally foreclosure can wreak havoc on your credit rating, making any future loans even more challenging to secure.
