While you never thought it could happen to you, anyone can find themselves in the position of being unable to make a mortgage payment. However, such an unfamiliar predicament may leave you wondering what you may be facing when you’re experiencing financial difficulties and can’t pay your mortgage payment. Now, while you may have a grace period, don’t become dependent on this benefit. Then, you should review the terms of your loan regarding the terms and penalties for missed payments so you can prepare for the consequences.
If you’re aware that you won’t make the payment, make the first move and contact the lender. Explain your hardship and find out how they can help you through a rough period with any repayment programs and other possible avenues of resolution, depending on your specific circumstances. We will discuss what you can expect if you’re behind on your mortgage in Asheville.
Initial Missed Payment
Late fees begin to accrue as soon as you miss a payment. If you’re just one day past the due date, expect to pay $15. This fee is often prorated and will increase by $5 per late payment with each passing week.
If you pass the 15-day mark, don’t be surprised if your lender charges 4 or 5 percent of your mortgage payment – $40 or $50 on a $1,000 monthly mortgage – in addition to the regular delinquent fee.
After that first 30 days, if you still haven’t contacted your lender about missing a payment, expect another late fee on top of more interest charges. In fact, not only will your late fees stay at their current rate, but your next payments will also be delinquent.
At this stage, you’ve passed the point of no return. Your late payments will be noted on your credit report, which means a lower credit score and higher interest rates for future loans.
36 Days Late
After 36 days without a payment, your servicer must reach out to you and attempt to discuss the situation causing you to be behind on your mortgage in Asheville. And should you have reached the point of missing your first month and surpassed 45 days without making a payment, then you can expect your lender to assign someone to your case to explain the options available to you.
When you’re 36 days late on your mortgage payment, it’s time to check in with your lender.
Depending on the terms of your loan, if you are more than 36 days past due on your mortgage payments (or 30 days for business owner-occupied properties) your lender will likely begin to closely monitor your account activity. The foreclosure process can be long and complicated; many things can impact how long it takes from the date a home enters foreclosure until a sale occurs, sometimes years.
One of those things is whether or not a homeowner has an attorney representing them during the process. While getting legal help isn’t always financially possible, some people have access to free or low-cost legal aid. You may also want to work out a repayment plan with your lender, to pay a set amount over a set period of time.
If you have yet to submit a complete loan workout application, you can expect your servicer to begin the foreclosure proceedings if you’re behind on your mortgage in Asheville. However, if you submit a completed application 37 days before a scheduled foreclosure sale, more often than not, your servicer must check into your eligibility for a loan workout.
Suppose you are behind on your mortgage in Asheville, and you submitted your loan workout application 37 days before the foreclosure sale. In that case, one of three scenarios must have occurred before your servicer could start or continue with the foreclosure process. The first occurrence would be a determination that you don’t qualify for a loan workout. Secondly, if you should reject the mortgage servicers offer for a loan workout. And the last condition, if you agreed to a loan workout and failed to live up to your word, such as missing a payment during the trial period, they may proceed with the foreclosure process. You may have as little as seven days to respond to your servicer should they make you an offer for a loan workout.
Under the condition that you submitted your loan workout application 90 days before the foreclosure sale, you can seek a review of the servicer’s decision, and they must assign someone uninvolved in the initial decision.
Whatever you do, don’t delay; it is much easier to sell your home before foreclosure proceedings begin. If you haven’t contacted your lender because you believe you have no way out, consider a direct sale of your home to a professional buyer like those at Asheville Cash Buyers. The experienced professional buyers at Asheville Cash Buyers understand all too well that circumstances in life can be beyond our control, and they want to help you make the most money you can for your home. At Asheville Cash Buyers, we stop and listen and are happy to answer any questions you have with no obligation. If your home is in less than perfect condition, your worries are over because most homes qualify for Asheville Cash Buyers to buy them directly in as-is condition. With the backing of cash, the closing can be in a matter of days, and you’ll receive an offer that you agree is fair because at Asheville Cash Buyers, we want you to feel good about the deal long after the closing. Contact Asheville Cash Buyers at 828-222-6443.