I recently received a pre-foreclosure letter. My April payment was late but is now current and was paid in partial payments with the last payment clearing last week. I checked with my mortgage company & my account is current. Can 1 month of being late put me in pre-foreclosure? Last year I was behind by 2 months and the mortgage company assured me I was fine and that they don't start foreclosure efforts until after 6 months. (That account was brought current shortly after.) I'm surprised because I have been in communication with the mortgage company and had been making partial payments. I work part-time, also self employed, and a student. My mortgage isn't that high in amount, it's that my pay days/income vary each pay day. Should I still get an attorney since I received that letter?
If you review your documents with the lender, you likely will find that you agree that the lender can start foreclosure procedures the day after you are late with your payment.
As a practical matter, most lenders right now have too many properties to worry about that it may be unlikely that they would have the resources to effect a foreclosure as promptly as they want or can under the agreements.
That you have a history of late payments likely means that the lender has already flagged your account for more aggressive procedures when you are paying late again.
You likely should contact the lender and work on changing the payment date to fit when you are paid.
You should also check whether you qualify for any of the several programs currently available for homeowners to modify their mortgages.
You can review your specific facts with your attorney to find out your legal options.
Banks are getting a bit more aggressive with sending the notice of pre foreclosure options letter out immediately in an attempt to speed up the timeline for foreclosure, especially Bank of America in my experience.
As the previous attorney mentioned in their response, Banks can begin the foreclosure process immediately after a missed payment. Usually they at least wait until the grace period ends and traditionally most institutions have waiting until the 2nd or 3rd missed payments.
If you are current now (and make sure there are not any late fees or other small amounts that can make it seem like you are in default), then there should be no problem. Likewise, be sure you get some sort of confirmation if possible in writing, via email, or via statement that you are indeed current. Some unscrupulous financial institutions will string you along, tack in a ton of fees, and either make a profit on the fees or on the foreclosure. Verbal confirmation over the phone is hard to prove.
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