Month One Missed Mortgage Payment:

  • The first month that you fail to pay your mortgage payment, your mortgage company will try and contact you, usually by mail, to inform you that you are delinquent on your mortgage.

  • The mortgage company will charge you a late fee on this missed first month mortgage payment.

  • It is very important that you speak to your mortgage company and honestly explain your financial situation.

  • Make certain that you tell your mortgage company when you believe that you can make your missed mortgage payment.

Month Two Missed Mortgage Payment:

  • The second month that you fail to pay your mortgage payment, your mortgage company will try and contact you by any means, including mail and telephone, to find out why you missed your first and second months mortgage payments.

  • Do not avoid your mortgage company’s calls. In fact, it is best to initiate the call to your mortgage company to explain the reason for your missed mortgage payments.

  • Your mortgage company will be more likely to work with you in the future as your situation progresses.

  • When you speak to your mortgage company, ask for the loss mitigation department. When you speak with the loss mitigation department of your mortgage company be honest, respectful and calm on the telephone and explain to them your situation and what you are trying to do to resolve your financial issues.

  • If at all possible, offer to make one mortgage payment at this time to prevent yourself from falling three months delinquent and potentially into mortgage foreclosure.

Month Three Missed Mortgage Payment:

  • The third month that you fail to pay your mortgage payment, you will probably receive a letter known as the “demand letter” or “notice of acceleration” from your mortgage company telling you that you are delinquent on your mortgage, the total amount that you owe and that you have 30 days to pay that amount (“Acceleration Period”).

  • You have two options before that 30 day period runs, you can pay the amount specified in the demand letter or make an agreement with your mortgage company about how and when you will pay the delinquency amount.

  • If you fail to pay the entire amount owed or make an agreement with your mortgage company about how you intend to pay that amount, then your mortgage company is allowed at that time to put you in foreclosure or accelerate your mortgage. They are unlikely to accept less than the total amount due.

  • The foreclosure or acceleration letter will tell you that your mortgage company forwarded your delinquent mortgage account to their attorneys. Even at this point, you may still be able to negotiate with your mortgage company to retain your home if you have the budget to do so.

Month Four Missed Mortgage Payment:

  • The fourth month that you fail to pay your mortgage payment, you will be at the end of the Acceleration Period.

  • If you have not come current on your mortgage payments or complied with any agreements that you have worked out with your mortgage company when the Acceleration Period ends, your mortgage company is entitled to take steps to foreclosure on your mortgage.

  • If your mortgage company begins mortgage foreclosure against your home, you will be responsible for all back mortgage payments, interest and penalties related to the mortgage, as well as all attorney fees and these must be paid in full in order to reinstate your mortgage.

Sheriff's Sale:

  • If your mortgage company has not received all amount due and/or you have not entered into an agreement with your mortgage company, a Sheriff’s Sale will be scheduled and that becomes the date of foreclosure..

  • You will be notified by mail of the foreclosure date/sheriff’s sale prior to that date.

  • In addition to the mailed notice of sheriff’s sale/foreclosure date, a notice will be taped to your home, usually on the front door.

  • For four (4) consecutive weeks prior to the Sheriff’s sale/foreclosure date, your mortgage company will publish the notice of foreclosure against your home in a local legal newspaper with general circulation.

  • If you fail to pay the amount necessary to reinstate your mortgage or work out a deal with your mortgage company, the Sheriff’s sale will go forward and your home will be sold to the highest bidder.

  • If no bids are made on your home, the title to your home goes to your mortgage company. This is known as the Sheriff’s Deed.

  • Even at this point, you still have rights to your home. YOU DO NOT HAVE TO MOVE OUT OF YOUR HOME AT THAT TIME.

Redemption Period:

  • If you fail to resolve the situation with your mortgage company; and the Sheriff's Sale is completed, then you enter the redemption period.

  • The redemption period starts from the date of the Sheriff's Sale and in the greatest number of cases, ends six (6) months after the sheriff’s sale.

  • Most mortgages allow the homeowner six (6) months to redeem their home with their mortgage company/bidder, by paying the amount owed on the mortgage, plus interest and fees.

  •  If property that your home sits on is over 3 acres, you may have a twelve (12) month redemption period. You will be notified of your time frame on the same notice that notifies you of your Sheriff's Sale date.

  • IT IS IMPORTANT TO NOTE THAT YOU HAVE AT LEAST SIX (6) MONTHS TO STAY IN YOUR HOME AFTER THE SHERIFF’S SALE.

Eviction Period:

  • If you have not redeemed your home within the redemption period, ownership of the home is transferred to your mortgage company or the highest bidder.

  •  At this point, if you have not left the home, the new owner starts eviction proceedings to evict you from the home.

  • An eviction hearing is held within two weeks, followed by a 10-day grace period for you to leave the home.

  • When the grace period ends, the eviction is certified.

  • Court bailiffs or County Sheriffs are notified and empty the home.