The Foreclosure Timeline

As a homeowner it is imperative that you have a general knowledge of the foreclosure process. The first and possibly most important thing to understand is TIME IS NOT ON YOUR SIDE. No one purchases a home with the intention of facing a foreclosure, but unfortuetly millions of American have been faced with the threat of foreclosure or been a victim of it. None of these people expected what was going to happen and usually time crept up on them and when they realized how bad things were it was too late.

To avoid foreclosure the first thing you need understand is the foreclosure timeline.

Day 1 - You miss your first payment. You may even tell yourself you will double up next month. So far there are no late fees.

Day 15-30 - You receive a notice of your late fee. Your mortgage company will make an attempt to contact you for an explanation. This late payment probably will not show up on your credit report.

Day 30 - Things change. You are now in default and your credit report reflects this late payment. Now you are further behind financially because you now owe the back payment and a late fee. This late fee is calculated on the total amount of the mortgage and not just the back payment. This is where the process can start to snowball.

At this point you may have a little lee-way with the mortgage company. They may have some patience, but in many cases they wont, and even if you send the delinquent payment they may return the check if it does not contain the late fee also.

Day 31- you not only do not have the late payment but now you do not have the current payment. You try to convince yourself that you will manage to catch up next month.

Day 45 - 60 - you are now past the 30 day grace period the loan agency provides for you to resolve the delinquent amount. You have been sent a "Breach" letter. Your phone is now ringing, it is the mortgage collector. These people are relentless and even if you just let the answering machine get it, they will attempt to contact you perhaps several times a day. There are rules that regulate their frequency and other activity, but even with these laws these collection agents can be unremitting.

During this period the loan agency will offer you two primary options.

1. The company agrees to attach half of the first missed payment onto each of the next two payments.

2. A loan modification. Usually either a lower interest rate or extended terms.

Somewhere between the 60th and 90th day the initial missed payment the lender will send a notice of default. At this point you will now receive collection costs along with the late fees that are attached to the delinquent payment that you missed. You can see that this is now pilling up and do not forget you could not pay the second month that is now 30 days in default and being charged late fees.

(Late payment + late fee + collection fee + next month's payment + additional late fee)

You are now receiving notices of foreclosure proceedings. You now have legal; fees added to your debt.

The foreclosure process continues.

Day 90-105 - your mortgage company has now refers your loan to the loss mitigation department and retains an attorney to handle the foreclosure proceedings. Depending on the state you reside in there may be a default notice now filed at the courthouse. This will also be published in the newspaper.

By now you may have missed 3 payments and you owe a couple thousand dollars in lender legal fees. Your mortgage company may try to arrange a payment schedule, but will it is likely you will have to pay a third of the delinquent amount upfront, and then pay off a portion of the remaining balance each month for a year.

After day 150 your home is scheduled to be sold at a Sheriffs sale.

Before it gets this far and you are facing eviction and the possibilities of being homeless take the necessary steps to reverse this situation.

You can do one of several things to stop this entire process. You can either list your home for sale before you end up in foreclosure or if your situation is such that you believe you can save your home you should contact a legitimate mortgage modification agency to assist you out of this downward spiraling vortex.

You do not have to be another statistic, you can avoid foreclosure. Knowing the process is the important first step, the second and probably hardest, is to seek help. Do not be proud, do what is necessary to prevent this set of events and contact a reputable negotiation agency. Being an educated consumer can save your home.

Discover how you can ethically modify your home mortgage loan and save as much as 47% off your current mortgage payment in as little as 60 days without refinancing? For your FREE CD, FREE e-book, and FREE coaching call with Mortgage Modification Expert and Business Man of the Year Billy Alvaro visit Saint Jude's Mortgage Rescue