Another Foreclosure Question?

Question

I posted a question the other day and got great answers. My question is this: Lets say your mortgage is due the 15th of each month and you have a grace period until the 24th. Does foreclosure happen on the due date or day after the grace period? I did research and my state, Mississippi, has 60 days. What date does foreclosure happen? Trying to get my ducks in a row, or at least try.

I had to give an update: I called a HUD certified credit counseling organization. They lifted a weight off my shoulders. The mortgage company can't forclose on us for us being 2 months behind on our mortgage. We called my mortgage company and all I have to do is pay 10.72 to get it up do date. I felt better with this organization on the same line with me. It was to the point that I was completely sick. Hopefully this won't happen again to us but just in case, I have that organizations number in my phone book. I feel better knowing the full process of foreclosure that this lady explained to me. So if anybody out there is having problems and being harassed by a mortgager, email me and I will give you their phone number. They were absolutely wonderful!!!

Answer 1

The first start toward a foreclosure is The current lender filing a Notice of Default. After you have been 90 days delinquent on your home, this is a document recorded with the county. During that time, if you come up with the past due mortgage payments you can save your home. When you start getting 120 days past due, it's most likely too late and your house is in foreclosure.

In reference to a grace period on paying your mortgage every month:

Your mortgage is due the 1st of every month. You have a grace period to make that payment up until the 15th. If you pay your mortgage payment after the 15th, you will incur a late charge. You will not show delinquent or past due on your credit report until after you are 30 days late.

Answer 2

I think they could start as early as the 16th, since that is the due date. The grace period usually only applies to the late payment penalty. As a practical matter, the lenders won't start the process until you are late with TWO payments, which means you've missed the first one entirely and the second one is now overdue as well. They won't do it just for one late payment. This would roughly square with the 60 day period you mentioned. If a payment is due July 15 and not paid by September 15, then they could start the foreclosure under your law. Usually, they don't hold the foreclosure sale immediately, they start with warning letters, but that's not necessarily good news because it means they've got an attorney and they're going to add attorney fees of $1000 or more to the sum you have to pay to avoid the foreclosure sale.

However, reading the summary I've attached, I'm not sure you're correct that there's a 60-day delay and you may want to double check the information you got.

Answer 3

60 days after the last due date. Foreclosure takes a while to initiate. Unless you have been a real headache, they will not begin foreclosure on day 61 without a really good reason.

Answer 4

Generally, foreclosure actions are not initiated based upon LATE payment. They are started for NO payment. I've yet to see a lender foreclose based only on being late. Lenders do not WANT to foreclose, since they generally lose a lot of money in doing so.

If you are up to date with payments due, even if they have been late on occasion, I would think you have nothing about which to worry.