How Late On A Mortgage Payment Before Foreclosure Proceedings Start?

It is very unfortunate that our country currently has hundreds of thousands of foreclosures in the real estate market. If you are one of the many people facing foreclosure, take comfort in the fact that you will not alone. If you are in this situation you probably have hundreds of questions. One of the main questions is how late can you be on your mortgage before you enter into foreclosure. There really is no simple answer as it is dependent on your state and the terms of your mortgage agreement. However in general you can normally expect to enter into the foreclosure process after the third missed mortgage payment.

Your credit will be affect after the first missed payment even if you are not yet starting the foreclosure process. Your credit will continue to worsen with every missed payment. In general you can expect your credit to take a hit of about 200 to 300 points after a foreclosure. That means that even with the best credit score you will be looking at a negative score once the foreclosure goes through.

One of the best things that you can do if you are in a situation where you don't think you are going to be able to make your mortgage payment is to talk to your mortgage lender right away. It is a common reflex to avoid the mortgage company; however that may be the worst mistake. A foreclosure costs mortgage companies thousands of dollars that is nearly impossible to recoup so it is in their best interest to work something out with you so that you can avoid a foreclosure.

The sooner you contact your mortgage company the more options you are going to have to either save your home or find alternatives so that your credit is not damaged quite as much. Some options you might be able to look into are refinancing, loan modifications, or short sales. These options may still adversely affect your credit, however not nearly as much as foreclosure would. You could also consider contacting a loan assistance company to help you negotiate with your mortgage lender or to help you figure out what the best solution is for you. These companies have reputable agents that know the laws and would be able to go through all of your debt and devise a plan to either keep your home or minimize the negative impact on your credit.