Re: WILL 3RD MISSED PAYMENT GO TO FORCLOSURE?

Posted by steele in minnesota on January 29, 2009 at 06:22:15:
In Reply to: WILL 3RD MISSED PAYMENT GO TO FORCLOSURE?
Posted by JR in California on January 28, 2009 at 13:41:55:Rathering than arguing semantics (but inviting immediate attack I suppose), let me give my 2 cents worth.

What you have probably been hearing is that many lenders will take action after the third payment has been missed. As suggested, they technically could after the first one but in most cases they know from experience that one, even two payment delays can happen and still be made up.

But, yes, many get nervous when that third one gets added into the late payment pot.

Each lender can have it's own rules on this. I have found that just because a party is negotiating in good faith the process will not automatically be stopped. There are numerous cases where the lender got screwed by a consumer. (Yes, Virginia, consumers can be bad guys too. Not just lenders.)

So negotiations and foreclosure can be going on at the same time.

Stay on top of your loan mod company and stay in contact with your lender (check up on your guys). Remember that with some lenders, they will not even consider a loan mod until you are in trouble. But even with foreclosure started you still have time.

As to what you are reading about foreclosures, remember that the media is more likely to print the horror story than the ones that work out. Blood sells.

Be part of the process. Good luck and let us know how it is going.

Steele

Follow Ups: