- Free Consultation: (202) 448-5136 Tap Here To Call Us
Missed Mortgage Payments: Your Options If You Default
If you have too many missed mortgage payments, your mortgage company will no longer accept payments from you. After too many missed mortgage payments (typically three), your lender will instead insist upon payment in full of the entire amount past due. The amount of missed mortgage payments, plus penalties and interest, is called the “arrearage.” If your mortgage lender or servicer actually accepts a payment, they will apply it to the oldest due payment. That usually means that you are still in default; the arrearage is still due in full.
One Missed Mortgage Payment:
Call Your Lender
Be proactive and contact your lender, especially if you know beforehand that you may miss a mortgage payment. If you have never defaulted on your loan, your lender will usually have an option or two for you. Be friendly on the phone. Ask what options are available and choose what option best fits your situation.
If you have missed payments in the past, your options may be limited. Lenders retain the entire record of your loan. If your loan was bought by another lender, the new mortgagor knows whether or not you missed payments with your former lender. You have more options with one missed mortgage payment than with two missed mortgage payments. And you have more options if you have never before defaulted.
Two to Five Missed Mortgage Payments:
Get the Money Together
Once you are three months (and sometimes even just two) behind on your mortgage, your lender will stop accepting monthly payments. Lenders insist upon curing the arrearage in full. For example, if you have a $1,500 payment and have missed five months, your lender will only accept a payment of $7,500 to reinstate your loan.
If you can, get the money together and pay off the arrearage in full. But only do this if you can continue to make the ongoing monthly mortgage payment. If the hardship that led to the default continues to exist, you may have better options. Don’t cure the arrearage if you will simply fall into default the next month.
The five-month timeline is a general rule and not specific to all situations. If you have either a high mortgage payment or lots of equity in your home, your lender will move more quickly.
Six or More Missed Mortgage Payments:
Contact an Attorney
You are headed for foreclosure if you miss six or more mortgage payments. For most home loans, lenders commence foreclosure proceedings at this point. The sooner you contact an attorney, the more options you will have.
Options include mediation, modification, sale or short sale, and bankruptcy. The wisest course is not to wait for foreclosure. Instead, call a foreclosure defense attorney and chart a plan of action. The bank’s foreclosure costs and expenses can unnecessarily cost you thousands of dollars unless you take steps to resolve the problem.
They Called. They're Glad They Did.
Brian Lee from Lee Legal was an amazing attorney to work with. He took his time, reviewed my documents and we discussed my situation thoroughly. He explained the process and my options as well as gave his recommendation. Not only did he assist, but he ensured that I knew this...
Brian handled a legal matter for me and he was fantastic. He kept me informed of all updates and resolved all issues that were presented. I highly recommend Brian to all seeking legal advice and services.
I was very nervous and scared about going through this process. But Brian was very knowledgeable and helped me through it. I was notified about any and all updates to my case and he was very responsive when I had questions regarding any concerns I had. Although a bit nerve...
I've had the pleasure of working alongside Brian V. Lee for several years, and I can say without hesitation that he is one of the most knowledgeable bankruptcy attorneys in the DMV area. Brian's command of Chapter 7, 11, and 13 practice is exceptional, and his clients in the DC...
I wanted to share my sincere appreciation for Brian and the support he provided during a very difficult time for my grandmother. We were not wealthy, but Brian treated us with genuine kindness and respect, making sure we felt comfortable throughout the entire process. He took the...
Still several years from Public Service Student Loan Forgiveness and saddled with significant student loan payments in proportion to my income, I came to Lee Legal to explore the bankruptcy path. Through his counsel, Brian took the fear out of the process and helped me to...
Brian provided me with a very detailed analysis about my potential case after our first consultation. He promptly responded to all my complex questions, especially navigating student loans and some tax discussions. He is very professional and experienced at what he does, I would...
I had the opportunity to work with Brian at a time when I was challenged by a professional setback and forced with the challenge of making some very difficult legal decisions. Additionally, I worked with him again as I was dealing with some financial issues pertaining to my...
Brian has the amazing talent of taking complicated legal matters and distilling them down to seamless, frictionless resolutions. He is a phenomenal problem solver and a trusted advisor.
I came to Mr. Lee in a panic when I was experiencing health problems and the walls seemed to be closing in on me. Initially, I interviewed four attorneys seeking assistance with my situation. He was one of the most thorough and thoughtful people I’ve ever met. His kindness and...
Brian is both warm and professional. He helped me navigate a financial issue that I had not been looking forward to working on and he made the entire experience non-stressful, receiving a lot of anxiety I had around the matter. He is straight forward and a fantastic problem...
Brian is an amazing lawyer. He was referred to me by a friend who was also pleased with his work. I found him to be affordable, efficient, understanding, and easy to talk to. He really cares for his clients and is very committed to doing his best. He is very knowledgeable and...
This is your last stop in your searches for an attorney. After numerous research and interview with many lawyers, I decided to hire attorney Brian Lee. He is extremely knowledgeable, personable, attentive and diligent. He went above and beyond to file my ch 7 bankruptcy and get a...
