I was wondering how many months can we go without paying before the bank starts foreclosure? I will be running out of unemployment in the next few months and cannot keep the higher payments and wondering what are my options? Thanks for any help.
Real Estate Attorney
There is not a hard and fast rule that lenders have to follow, and you should check the terms of your mortgage or deed of trust, but generally foreclosure starts after you are 60 days late on payments. Basically, when you skip the first payment (let's assume it is due on the first of the month), the bank notes you being 10-30 days late and sends a notice to you asking you to come current. When you do not pay the second month's payment in a timely manner, you are noted as being in the 30-60 day range and you get a more "serious" note about coming current or facing foreclosure, attorney's fees, costs, etc. Then, once the third monthly payment is not paid (i.e. 61 days late), you are referred for foreclosure. The timeline for foreclosure then depends on the laws of the state where the foreclosure will occur.
Disclaimer: This answer is provided for informational purposes only, does not constitute legal advice, and does not create an attorney-client relationship. I am licensed in Arizona and can only provide general comments on matters outside of Arizona law. Actual legal advice can only be provided after a direct consultation in which all of the relevant facts are considered before providing a response.
4 lawyers agree
Generally, they process begins when you fall three months behind - on the 61st day (about). I have seen many months go by before the process in some cases. If you are attempting a loan modification, you should continue to do that. Many clients apply 5-6 or more times before they are granted a loan modification.
Here in Chicago, the bank may not file a new foreclosure case if the homeowner is under consideration for a loan modification. So, sometimes, just applying can help.
I hope this helps.
Steven A. Leahy
Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-client relationship is created or is intended to be created hereby. You should contact a local attorney to discuss and to obtain legal advice.
3 lawyers agree
Estate Planning Attorney
I've been involved in many foreclosures in CT and that's about right for CT as well...when you're into your third month of nonpayment, generally. However, if you're having no luck with Chase, contact the State Banking Department.
The rule of thumb is that after 3 months of missed payments, a bank would start a foreclosure here in Connecticut. However, that 'rule of thumb' is outdated today. I have had cases where people were 6-12 months of no payment on their mortgage and still there wasn't a foreclosure. There's simply no sure way to tell what their policy is today. It could be 3 months without payment on your mortgage and the bank starts the foreclosure but in many cases I have, it could take 6 months or more before the foreclosure is started. Clients ask me this question all the time when they haven't made a payment on their mortgage, and all I can say is that we just have to wait and see.
That's why it is a Chinese curse to wish that someone be born during interesting times. Everything is so unsettled that it's nerve racking. I don't have a standard answer to give you other than 'wait and see'.