Behind on payments, before anything has been filed
This is the best place to be standing, even though it does not feel like it. Nothing has been recorded, no clock has started, and almost every option is still open. The main risk at this stage is avoidance.
What you might be thinking
- If I call the lender, will that make it worse?
- How far behind is too far behind?
- Will they take the house over two payments?
All three come up on almost every call. None of them is a silly question.
What actually matters here
Calling your servicer does not trigger foreclosure
This is the fear we hear most often and it is not how it works. Federal rules actually require your servicer to contact you about options within about 36 days of a missed payment. Answering that call creates a record that helps you later.
The 120 day floor
Your servicer generally cannot make its first foreclosure filing until you are more than 120 days delinquent. That is roughly four missed payments of room, and it is federal law in all five states we serve.
Arrears grow faster than you expect
Late fees, then foreclosure costs, then attorney fees. The reinstatement figure at month two is a very different number than at month eight. Early is cheaper.