topic Delinquent Mortgage payments in Mortgage Loans

Delinquent Mortgage payments

Anonymous — Mon, 16 Jul 2012 03:18:10 GMT

I have fallen behind on my mortgage payments after losing my job. I am 2 payments behind and on the verge of being 3 behind but will be able to make a payment before the end of the grace period. I have been behind for the last 3 months in a row but have never fell behind with 3 late payments. I wanted to know how long will the mortgage company allow me to keep being 2 payments behind as long as I continue to make 1 payment each month but never go to 3 behind. They denied my loan modification and repayment plan request so I dont know what other alternatives I have. The good news is that I should be back to work by the end of the month and Im hoping to catch up. Im just worried about going into foreclosure if I continue to be 2 payments behind. Any advice is greatly appreciated thanks.

Re: Delinquent Mortgage payments

Anonymous — Mon, 16 Jul 2012 03:55:11 GMT

Whatever you do, don't become later than two payments. They may not accept your single month payment and require the entire balance be paid before they accept.

Re: Delinquent Mortgage payments

Anonymous — Mon, 16 Jul 2012 04:11:54 GMT

Do you know how long they will continue to let me be 2 payments behind? I plan to catch up ASAP but Im also very nervous about how long they will allow me to just make 1 payment. Cause its like I can keep up with 1 payment monthly but I just can not catch up on the past due payments.

Re: Delinquent Mortgage payments

tooleman694 — Mon, 16 Jul 2012 12:53:53 GMT

Probably forever.

Bank is not gonna take the house away from someone that is paying even if it is slow. Just dont get a year behind.

Re: Delinquent Mortgage payments

StartingOver10 — Mon, 16 Jul 2012 12:56:44 GMT

@Anonymous wrote:
Whatever you do, don't become later than two payments. They may not accept your single month payment and require the entire balance be paid before they accept.

+100

You are already treading on very thin ice. If you can't catch up, then consider selling your home.

Is your payment affordable otherwise? Are rents higher than your mortgage payment? If so, then consider a roommate - or selling anything not nailed down (extra items around the house).

I'm not trying to panic you, but you are in default now. Some lenders move faster than others to put you into foreclosure. 90 days is definitely the drop dead date where you cross into "no going back" territory. Do everything you can to catch up now so you don't lose your house.

Re: Delinquent Mortgage payments

tooleman694 — Mon, 16 Jul 2012 13:05:58 GMT

How do you know they are in default?

The bank has to send a letter stating this, and even then you have options to catch up.

Re: Delinquent Mortgage payments

StartingOver10 — Mon, 16 Jul 2012 13:49:59 GMT

If you read the note and mortgage it will describe the default conditions.

In no note and mortgage that I have read (and I have read hundred and hundreds - more than 1000 of them) there is no instance where a default is not incurred after non-payment for 60 days. That is what the OP said - they haven't paid for more than 60 days.

To be absolutely correct, the OP needs to read his note and mortgage so he is not caught unaware. His servicer has already turned him down for a modification. He can try again, but he needs to be well aware of the timelines so he doesn't find himself in a spot from which he can't recover. It happens quickly. I'm a Realtor and most of the short sale clients I work with were "surprised" by getting served after 90 days.

Re: Delinquent Mortgage payments

Anonymous — Mon, 16 Jul 2012 17:28:20 GMT

I was served a notice of default after only being 30 days late. So I agree that the OP needs to go back and read her note because each bank is different.

What I will say is is that this is the time when you need to keep open communication with your lender. The MINUTE I knew I would be late I called and explained what was going on. I called regularly to let them know when I could catch up and I was caught up the week after I was marked 30 days late.

Things happen, but I think its always best to keep an open dialogue with your mortgage company rather than avoid calls and letters.

Re: Delinquent Mortgage payments

tooleman694 — Mon, 16 Jul 2012 17:31:15 GMT

After only 30 days?

No wonder this country and the banks are in the trouble they are.

Re: Delinquent Mortgage payments

Anonymous — Mon, 16 Jul 2012 18:04:51 GMT

The payments are affordable its just that I can not catch up to the ones I missed. I had to wait until unemployement benefits kicked in and that made me fall behind when I wasnt recieving any income. This is why I am always just 2payments behind now cause I can keep up but cant really catch up. The bank is Wells Fargo and they told me I am not in default yet and they have not sent any demand letters or started foreclosure because I was going through the modification process. But when the loan modification was denied the preservation specialist told me not to ever fall behind 3 payments, which I don't ever plan to but I didnt plan to be in this scenario in the first place. I was just hoping I would be allowed to catch up after being 2 payments behind in about 2-3 months when I am back fully employed with extra money.

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Anonymous — Mon, 16 Jul 2012 18:06:58 GMT

Tooleman when you say just dont get a year behind do you mean dont stay 2 payments behind for more than a year?

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Anonymous — Mon, 16 Jul 2012 18:10:34 GMT

I have not reached the 90 day past due mark as of yet. But I was about 75 days past due (2 months and 15 days into the grace period for the current month). I made a regular payment so now Im back at 60 days past due. I just need a little time to catch up and im not interested in selling so thats why I was asking if anyone knew how long the bank would allow me to keep being 2 months behind so I can work to catch up within a few months.

Re: Delinquent Mortgage payments

Anonymous — Mon, 16 Jul 2012 18:43:23 GMT

I agree Tooleman I am not in default yet.

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Anonymous — Mon, 16 Jul 2012 18:30:36 GMT

Tooleman is correct. They have not sent me a letter saying I was in default etc. I was recently denied the loan mod about 2 weeks ago so during that time any foreclosure attempts are ceased. They were not even calling or anything. Now that I was denied the rep would not tell me how long they would be ok with me being behind but she said just dont fall past 3 payments late.

Re: Delinquent Mortgage payments

tooleman694 — Mon, 16 Jul 2012 18:37:11 GMT

I was trying to say, that if you are rolling along making slow payments but still making payments you will probably not get forclosed on.

The people I know that have lost their house was after not making a single payment in a year.

Why would a bank go thru all the trouble to get you if you are still paying but behind, they have other fish to fry.

Re: Delinquent Mortgage payments

Anonymous — Mon, 16 Jul 2012 18:44:49 GMT

Got it thanks for your input.

Re: Delinquent Mortgage payments

Anonymous — Mon, 16 Jul 2012 23:39:39 GMT

I am in the same situation with WF I was out of work for awhile applied for a modification they took me back and fourth with the paperwork for a year plus before they offer me 40 years @ 8%. I told them no I only have 13 years left and under $100,00 I ask could I do a repayment they said no. I went back to work started paying the mortgage and realized that they were applying the payment to the past due not the current amount which meant late fees I stop paying applied to agencies for assistance no help now 2.5 years later received same Loan modification went to a Lawyer spoke about a chapter 13 have to research only owe $29,00 no other real debt. Its frustrating especially when the options are not in your favor. I realize its a business but WF slogan We are here when you need us is a Joke! Good Luck try to resolve before it gets out of hand... Looking for a Bank that would either refi or give a Loan realizing the credit history?

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webhopper — Mon, 16 Jul 2012 23:40:28 GMT

I agree with the poster who said sell stuff.

Do you have stuff to sell so that you can get caught up?

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Anonymous — Wed, 18 Jul 2012 17:56:14 GMT

Webhopper I dont really have anything to sell that I dont need. One thing I am noticing though is that as long as I am no more than 2 behind they are allowing me to catch up. When I try to pay online when the due date is coming for the 3rd payment I can't even pay online and it says my account is restricted from doing such. Then after I make a payment and the account goes back to only being 2 payments behind then I can actually access my account online again and make a payment etc. I guess no one knows the answer to how long I really have to continue to be 2 payments behind while I catch up, but it looks like it's just as the WF rep said I should never fall behind with more than 3 payments. I hope that I will be caught up no later than the end of August or by mid-September. Pray for me!

Re: Delinquent Mortgage payments

Booner72 — Wed, 18 Jul 2012 18:07:21 GMT

So if you can live with being 2 months behind, then do it - but you know you are getting late payments each month bc the payment you make now goes to the first payment missed, etc, so you can't be current on your credit reports until you get current. Your credit is going to be pretty screwed for a long time unless somehow WF will agree to remove the late payments via GW. I know your credit probably isn't the #1 thing on your mind right now, but I've learned the hard way that it sucks and makes life very difficult to not get credit when it is NEEDED.

llecs has great advice - cancel cable, newspapers, any services you have except basic internet. There has to be stuff you can sell that you "don't need." Craigslist is amazing to sell things for quick cash. We made over 100 dollars this weekend selling stuff we didn't use. Eat beans and rice and cut your food budget to next to nothing. No cigs, no coffee, no luxuries of any kind - put every extra dollar you get toward your mortgage payments. Where there is a will there is a way. Are you making car payments? Can you get rid of that car and buy a car outright via cash? 3-4 car payments and you have enough to get a good runner.

Good Luck.