How long delinquent before foreclosure

Facing a foreclosure can be a great source of stress and emotional turmoil. Many homeowners in this predicament can't sleep, fall into depression, have strained personal relationships, and find that the stress negatively impacts their performance at work.

But you don't have to panic. In most cases, the bank can't start a foreclosure right away and the process is structured—and sometimes lengthy. You'll have time to make a plan and evaluate your options so long as you act as soon as you know you're in trouble. In this article, you'll learn how long you likely have before a foreclosure will start and you'll get a general overview about what will happen in the lead-up to foreclosure, in order of what you can expect.

When taking out a loan to buy a home, a borrower typically signs two primary documents: a promissory note and a mortgage or a deed of trust.

The promissory note is the personal promise to pay back the money borrowed. The mortgage or deed of trust, on the other hand, establishes the lender's lien on the property and is recorded in the county records.

The terms of most promissory notes require the borrower to make a payment by a specific day of the month and include a grace period for the payment. If you fail to make the payment before the expiration of the grace period, your bank will assess a late fee. Also, if you default on the loan, the terms of your mortgage likely allow your bank to pass on certain expenses to you. These expenses include attorneys' fees and inspection charges, among others.

In most cases, shortly after you start missing payments, federal law requires the servicer the company that manages your loan account on behalf of the bank to contact you in person and in writing to let you know about foreclosure avoidance—called " loss mitigation "— options.

The servicer has to make live contact with you—or take reasonable steps to contact you—by phone or in person no later than the 36th day of the delinquency to talk about loss mitigation options. So, your servicer will probably try to call you shortly after you miss your second payment.

The servicer also has to contact you again within 36 days after each payment due date for as long as you're delinquent on the loan, even if the servicer previously talked to you. However, if you filed bankruptcy or told the servicer to stop communicating with you under the Fair Debt Collection Practices Act FDCPA , and the servicer is subject to that law, the servicer doesn't have to try to call you. If you don't apply for loss mitigation during the day preforeclosure period, you can still apply for a loss mitigation option after the foreclosure begins.

The servicer generally doesn't have to review multiple applications from you, though, unless you bring the loan current after submitting an application. Also, it's usually better to get the process rolling during the day preforeclosure period—before you get even further behind in payments and foreclosure costs start to add up.

Under federal law , so long as you submit your complete application more than 37 days before the foreclosure sale, the servicer can't ask for a judgment or order of sale, or conduct a foreclosure sale unless:. Along with the day preforeclosure period, federal law also provides you with various protections before and during a foreclosure. Many mortgages and deeds of trust have a clause that requires the lender or servicer to send you a notice, commonly called a "breach letter," informing you that the loan is in default before it can accelerate the loan and proceed with foreclosure.

The acceleration clause in the mortgage or deed of trust permits the lender to demand that the entire balance of the loan be repaid if you default on the loan.

If the day time period expires and you haven't cured the default, foreclosure proceedings, which could be nonjudicial or judicial depending on the state and the circumstances , will begin. Most times, you'll get this letter during the day preforeclosure period. Your state's foreclosure laws might also require the servicer to send you some kind of preforeclosure notice. To find out how to apply for a loss mitigation option, call your mortgage servicer.

If you need more information about different ways to avoid foreclosure, consider contacting a foreclosure attorney or a HUD-approved housing counselor. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. The attorney listings on this site are paid attorney advertising. In some states, the information on this website may be considered a lawyer referral service.

A HUD-approved housing counselor can guide you through the process. Read this checklist on avoiding foreclosure. Searches are limited to 50 characters. Please do not share any personally identifiable information PII , including, but not limited to: your name, address, phone number, email address, Social Security number, account information, or any other information of a sensitive nature.

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