- As you let time lapse from your first missed payment, your debt with the mortgage lender accumulates. According to Bankrate, as soon as 16 days from the due date of your first missed payment, your mortgage lender charges you a late fee. By the time the mortgage lender threatens you with a foreclosure auction, you will have missed several months' worth of payments. Also, you will have owed not only the original payment amount, but also late fees, interest and attorney fees. You can either pay off the entire amount as a lump sum or negotiate other arrangements with the lender.
- About 90 days from your first missed due date, you will receive a written notification known as the "Demand Letter" or "Notice to Accelerate," according to the U.S. Department of Housing and Urban Development (HUD). This letter details the amount of money you have to pay and gives you 30 days to do so. If you don't pay off the outstanding amount within 30 days, your mortgage lender starts legal action and you incur attorney fees.
- You will find out the actual date of the foreclosure sale after the 30-day due date, as stated in the Demand Letter of the Notice to Accelerate. The mortgage lender may send you a written notification, tape a warning on your door or advertise the sale in the media. According to HUD, you can still pay off the delinquent amount on the day before the foreclosure sale to save your home.
- After the sale, you may still be able to save your home. Some states have a redemption period after a foreclosure sale. During this period, you can pay off the delinquent amount and get your home back. The notice that contains the details of the foreclosure sale also specifies the time frame of the redemption period. The availability and length of the redemption period vary depending on your state laws and the type of foreclosure.
Delinquent Amount
Notification
Before the Auction
Redemption Period
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