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 Fort Myers.
Initial Missed Payment
Passing the late payment threshold, typically 15 days, means you can expect to incur late fees if you’re behind on your mortgage in Fort Myers. These late fees are commonly 4 or 5 percent of the mortgage payment. If you pass the 30-day mark, your delinquent payment will appear on your credit report and drop your credit score. Many factors determine how much of a drop your score will experience; needless to say, the better your score, the more you have to lose. If you find yourself in this situation and have yet to reach out to the lender, now is the time to take action.
Failing to address these issues promptly can lead to more serious consequences, such as foreclosure proceedings. Foreclosure can be a long and complicated process, but it ultimately results in the loss of your home. Additionally, having a foreclosure on your record can severely impact your ability to qualify for future loans or credit, affecting your financial future for years to come. If you’re struggling to make your mortgage payments, it’s important to explore your options as soon as possible, such as loan modifications or refinancing, to avoid the potentially devastating effects of foreclosure.
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 Fort Myers. This contact is an important opportunity to explain your circumstances and explore potential solutions to avoid further delinquency. If 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. This representative will likely discuss options such as loan modifications, repayment plans, or other foreclosure avoidance programs that could help you get back on track with your mortgage payments.
It’s crucial to engage with your lender or servicer during this period to understand your options and work towards a resolution. Ignoring their attempts to contact you could result in further complications and potentially lead to foreclosure proceedings. Being proactive and seeking assistance early on can often lead to more favorable outcomes and help you stay in your home.
Options
When you find yourself falling behind on your mortgage payments in Fort Myers, it’s crucial to understand the support available from your servicer. Your servicer is likely to offer various options to assist you, but the first step is to communicate your intention to seek a loan workout. After expressing your interest, you’ll need to complete an application, and your servicer should promptly request any additional information necessary for processing within five days of receiving your application. Within a month of your submission, your servicer is mandated to present you with the available options tailored to your situation, ensuring you’re well-informed and empowered to make the best decision for your financial well-being.
It’s important to note that these timelines and requirements may vary depending on your location and specific circumstances, so it’s advisable to clarify these details with your servicer. Additionally, staying proactive and maintaining open communication with your servicer can greatly expedite the process and increase the likelihood of finding a suitable solution to help you manage your mortgage obligations effectively.
120 Days
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 Fort Myers. 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.
Loan Workout
Suppose you are behind on your mortgage in Fort Myers, 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.
Review
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 Sell My House Now USA. The experienced professional buyers at Sell My House Now USA 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 Sell My House Now USA, 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 Sell My House Now USA 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 Sell My House Now USA, we want you to feel good about the deal long after the closing. Contact Sell My House Now USA at (239) 360-3176.