When you have fallen several months behind on your mortgage, the lender will automatically begin foreclosure proceedings to take back possession of the home. This can be a difficult time for many people who have either lost their jobs or have suffered a financial crisis that is currently causing them to not be able to make the payments. There are ways that you can buy time from being evicted from the home, but you have to be willing to reach out for help to get the process started.
The very first thing you should do when you have fallen behind on your mortgage is to contact the mortgage company and ask to speak to their loan modification department. One thing that you have to understand is that the mortgage company already has a huge inventory of foreclosed homes, and they are not making any money by adding your home to that long list. The last thing that the bank wants is to lose a homeowner who could regain the ability to make those mortgage payments again in the near future.
This is why these lending institutions have the loan modification departments. Once you get the department on the phone, they will do a brief financial analysis over the phone to determine what your ability to pay is. Once the lender has determined that you do in fact have the potential to qualify for a reduction in your loan amount, they will send you a package that you will need to complete. In this application you must submit all your financials to show what you are currently making versus what you are paying in your bills.
During this loan modification process, the lending institution will stall the foreclosure process. This way you do not have to worry about losing the house or being evicted regardless how many months you are behind on your payments. Whether you are three months or eight months late, during the loan modification process the lending institution will try to get the situation resolved so you can keep the home.
Once you have submitted all the paperwork, a determination will be made whether or not your loan will be modified. If it was approved, you will most likely be placed in a trail period where you have to submit smaller mortgage payments according to the agreement. If you make those payments on time, at the end of the trial your loan will be modified and you are basically given a clean slate where you start the loan all over again.
If you were denied the modification, you still have the ability to buy time before the house is foreclosed. Hire an attorney and they will be able to keep you out of court for several months if not years. During that time you get to live in the house, and as the proceedings are delayed you can work on finding the past due money needed to bring the loan current. Once the past due amount is paid, the foreclosure will be nullified by the lender.