The idea of losing a home can be devastating. Though most people buy a home with the intention of making payments over the years, some people can end up falling behind. You may have recently found yourself facing difficulties with your finances, and you feel worried that your house will end up on the line.
Your concern is valid as missed payments could easily result in your house going into foreclosure proceedings. After all, your mortgage lender expects your monthly payments, and if you do not make them, your lender will want to collect.
How does foreclosure come about?
First, it is important to keep in mind that one missed payment, especially one that occurs due to forgetfulness, will likely not lead to foreclosure. However, it will likely lead to a letter from your mortgage lender informing you that it has not received your payment. At this point, if forgetfulness were the issue, you could make your payment and handle any late fees you may have incurred.
On the other hand, if your money problems have made it difficult for you to make your payments and that first missed payment turns into two missed payments, your lender could send a demand letter for payment. As the name implies, the lender demands payment for your mortgage loan. Still, it is feasible to work with your lender at this point to reach an agreement before foreclosure proceedings.
If you do not make payments within 30 days of your lender’s demand letter, the problem does not go away. Your lender will likely send another notice after 90 days of nonpayment. This notice indicates that the loan is in default and that the loan will transfer to the foreclosure department. Understandably, you may feel worried about losing your home, and if your financial circumstances have not improved to a point where you could feasibly catch up with your missed payments, foreclosure is a real possibility.
What can you do?
Fortunately, you can still take measures to delay or even completely stop foreclosure proceedings. Bankruptcy may allow you to do just that, but you need the right information to determine how this option could help you. In order to gain that information, you may want to contact an experienced Tennessee attorney who could assess your exact circumstances and help you work toward financial stability.