When you applied for the loan, it never crossed your mind you may have trouble making payments. Occassionally, unexpected things happen and families face some financial difficulties and cannot make the mortgage payments on time. Usually there is a grace period in case the bill got lost in the mail or has been misplaced. You may want to double check the fine print of your loan agreement to review the terms and penalties for missed payments.
If you know in advance that you won’t be able to make a payment, stay proactive and contact your lender right away explaining the hardship you are facing. Communication is key in order to find out how they can help you in your situation. They may offer a repayment program or extend the due day, depending on your specific circumstances. Remember, always get the agreement on writing with dates and names of representatives you reached out to.
In this article, we will discuss what you can expect if you’re behind on your mortgage in McAllen.
Missed Payment
If you are still behind your mortgage, after the late payment grace period (usually around 15 days) you can expect to receive a statement with some late fees. These late fees are commonly 4 or 5 percent of the mortgage payment. If 30 days pass 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.
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 McAllen. And should 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.
Options
You can expect your servicer to have several options to help you if you’re behind on your mortgage in McAllen. But, first, you must express your interest in a loan workout to your lender. Then, you’ll be required to apply, and your servicer must request any missing information on the loan workout application within five days of submission. Finally, within 30 days, your servicer is required to provide you with the options available in your case.
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 McAllen. 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 McAllen, 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 Dolfin RGV. The experienced professional buyers at Dolfin RGV understand 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 Dolfin RGV, we stop and listen and are happy to answer any questions you may have with no obligation. If your home is in less than perfect condition, your worries are over because most homes qualify for Dolfin RGV 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 Dolfin RGV, we want you to feel good about the deal long after the closing. Contact Dolfin RGV at (956) 904 5234.