| Payments due on the
1st Late fee after the 15th day
Begin communication by
contacting your Lender.
Contact a MSHDA approved lender for refinance options. |
Late charges are
assessed.
Loan is in default at 30 days.
Lender sends notice of delinquency.
Negotiate a work out plan “what are my options?” |
Lender attempts phone
contact. Lender sends “demand” or “breach” letter to the borrower
pointing out that terms of the mortgage have been violated.
Once the “demand” letter goes out all delinquent payments are
due. Partial payments are not accepted.
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Lender hires local
attorney or other firm to initiate foreclosure proceedings. Adds
about $1,500 to $2,500 to your costs.
Interest continues to accumulate.
Public Notification - Notice of Foreclosure at the local
courthouse, details of the debt published in local paper for 4
consecutive weeks and notice posted on the home.
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Title transferred
subject to Redemption Rights of the owner.
The “sheriff’s deed” list the last date the property can be
redeemed.
Redemption period is generally six months, but can be up to 12
months if property is over 3 acres or there is more than 50% equity
in the property.
Warning: If you vacate the home the Lender can accelerate or
shorten the redemption period.
To get the property back you must pay:
Mortgage + interest + late fee + court costs + attorney fees. |
LIVE in the house
- No payment
- Maintain utilities
- Maintain Insurance
- General upkeep
EVICTION - At the end of the Redemption Period you will receive
an eviction notice.
LEGAL NOTICE - You will be served with legal notice of action.
You can appear in court.
Date is set to actually have the Sheriff move your belongings to
the curb. |
| During
this time if you can make a partial payment – make it. Don’t
commit to a workout plan if you cannot maintain it or make the
payments.
In most cases, the collection and foreclosure process continues
while your request for a workout is under review.
Make sure you are communicating with someone who has the
authority to do a workout and get it in writing.
Refinance - If you have an Adjustable Rate Mortgage (ARM) or if
you have late payments find out if you are eligible for MSHDA’s
“SAVE THE DREAM” Refinance Programs or the FHA Secure Product.
Payments can be made beyond the 15 days, but 30 days late raises
a red flag and can hinder your ability to refinance.
Be Realistic – if you cannot afford to keep your home, list it
with a reputable Realtor and sell it. |
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