If you accidentally miss a mortgage payment and send the check in late, your lender isn’t going to foreclose immediately. However, if your finances are getting tight and it becomes clear that you’re going to miss a payment, you may naturally be concerned about losing your home.
For instance, let’s say you’re having trouble paying your bills. Next month, you know there won’t be enough money to cover all of your necessities, including your mortgage payment. Missing a payment is far from ideal, but should you worry about foreclosure? When that check doesn’t arrive, will the mortgage lender start the foreclosure process right away?
It usually takes 4 missed payments
As a general rule, lenders wait until the fourth missed payment to start a foreclosure. If you’re paying once a month, this means you likely have around 120 days before foreclosure proceedings begin. Lenders won’t foreclose just because of one missed payment, but they will contact you in an effort to collect what is owed. They typically look for a clear trend of missed payments over four months before considering foreclosure.
Even then, foreclosure isn’t instantaneous. For example, under New York law, a lender is required to provide a 90-day pre-foreclosure notice. This is just one step in the foreclosure process, which involves numerous deadlines and can take months to complete.
You still have time
While it’s natural to feel anxious about missing a payment and potentially losing your home, it’s important to recognize that foreclosure doesn’t happen immediately. There is time to explore all of the legal options available to you as you navigate this challenging situation.