Late on House Payments
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Falling behind on house payments comes with a lot of stress. After all, most of us completely rely on our homes as a place to live, keep our belongings, and raise our families. The possibility of losing your home to foreclosure is a lot of pressure to stand up against. So, if you are late on house payments, it’s important to know what to expect and what steps you should take.
What Happens If You Are Late On a Mortgage Payment?
If you’re a few days late on a mortgage payment, you likely have nothing to worry about saving for a possible dent in your credit score. However, you may begin to face harsher consequences once the lender’s grace period expires, which usually happens once your payment is 15 days late.
After 15 days, you will likely receive a late notice and your account may be assessed for a late fee. If you still do not make your payment by the last business day of the month, your account will be reported as late to credit agencies, which can have a significantly negative impact on your credit score.
Each month after the first, your credit will continue to drop and your account may continue to accrue interest and fees. Once your payment is 90 to 120 days late, your lender may begin the foreclosure process.
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How to Avoid Foreclosure
When you begin missing your required payments, it may be tempting to do your best to ignore the problem. However, you may be able to avoid a lot of problems by taking quick and careful action. Here are a few tips for avoiding foreclosure:
- Contact your lender as soon as possible. As soon as you realize you are struggling to make payments, it may be a good idea to call or meet with your lender. Most lenders do not want to take your house and will try to work with you on finding alternative solutions.
- Don’t ignore mail from your lender. Missing payments and worrying about foreclosure makes a lot of people avoid anything that has to do with their lender. However, it’s important to open, read, and respond to any mail from your lender, particularly because it may contain critical notices about pending legal action.
- Consider liquidating some assets. Many people have some assets that they can liquidate for cash to help meet late payments. Things like a second car, jewelry, life insurance policies, and televisions can usually be liquidated fairly quickly. While this option may help you get out of a tight spot, it likely isn’t a viable long-term solution.
- Consult a skilled debt relief attorney. If you are struggling to make your mortgage payments and are worried about a foreclosure, it may be time to enlist the help of an experienced debt relief attorney. A lawyer can help guide you through alternative options that allow you to keep your home, such as filing for Chapter 13 bankruptcy.
An Experienced Debt Relief Attorney Could Help
If you are struggling to make your mortgage payments and are worried about foreclosure, don’t wait to contact the skilled debt relief attorneys at OlsenDaines. Our lawyers are dedicated to helping you navigate these challenging situations, and we want to help set you up for success. Call us to learn more, or schedule your free consultation today!Back to Chapter 13 Bankruptcy Attorney