Missing a significant number of payments in a mortgage may expose a homeowner to foreclosure. In such cases, some lenders tend to be more lenient, while others tend to push foreclosure as soon as possible – even when there is only a single late payment.
Fortunately, there is a set of legal provisions to prevent lenders from immediately foreclosing a property due to missed mortgage payments. However, how long could it take until a lender puts a property to foreclosure?
In this article, you will discover the time frame before a property goes through foreclosure in Florida.
How Many Missed Payments Before Foreclosure in Florida? – The First Month
In Florida, mortgage payments usually are due on the first of the month. After 15 days, it is considered late if the homeowner did not pay. Typically, most lenders permit a grace period of 15 days after one misses a mortgage payment.
Nonetheless, the pending mortgage payment accrues a fee of about 5% of the owed amount. If the homeowner persists in defaulting the payments due, the fees will start accruing monthly.
If the homeowner is still defaulting after 30 days, the lender may report it to credit bureaus. Typically, the lender will start inquiring the defaulter about the reason behind the late payment.
As provided by federal law, the lender must contact a mortgage defaulter no later than 36 days after he/she started missing the owed payments. Ideally, the lender should propose a loss mitigation option, such as a loan modification, a short sale, or a deed in lieu.
However, they are not obligated to do so, which makes it essential to have a legal advisor to provide guidance during times of financial distress.
How Many Missed Payments Before Foreclosure in Florida? – Between 45 and 90 Days
When a borrower defaults on a mortgage payment for more than 45 days, the lender should propose solutions in terms of loss mitigation. The term “loss mitigation” refers to a process in which a borrower and a lender work together to avoid foreclosure.
Either the lender appoints expert personnel to handle the situation or not, the best approach is to have a legal advisor. An expert foreclosure attorney in Florida will help by:
- assessing the available options to proceed with loss mitigation
- guiding the application process
- Updating and reviewing the application (if necessary)
- Appealing a denial of application (if necessary)
- Fighting in court to avoid foreclosure (if necessary)
After 90 days, a defaulting borrower may receive a breach letter from the lender. This letter is used by lenders to provide notice that the mortgage is officially in default. Typically, a breach letter will also identify feasible options to settle the outstanding debt.
Yet, the letter will provide a specific due date to solve the delinquency, and explicitly state that failure to settle the debt may result in foreclosure. Typically, it is the final borderline between the chance of saving the property and facing foreclosure in court.
How Many Missed Payments Before Foreclosure in Florida? – After 120 days
Before 120 days of defaulting the mortgage payments, no lender can file foreclosure against a borrower. The Dodd-Frank Act provides a 120-day loss mitigation period, which refrains lenders from filing a foreclosure lawsuit against a defaulting borrower.
In such cases, the 120-day period can be extended by filing a loss mitigation application with the help of an expert attorney. After the late payment is 120-days overdue, the lender may proceed to file a foreclosure lawsuit in an attempt to seize the mortgaged property.
Avoid Foreclosure in Florida – Work with Attorney Romy B. Jurado Today
It is possible to avoid foreclosure up until the foreclosure sale is complete. Every second counts, so waste no time with uncertainty. Call Attorney Romy B. Jurado today at (305) 921-0976 or send an email to [email protected], so we can get to work immediately.