You hear of people being behind in their mortgage all the time, and now you never thought it could happen to you. And anyone can find themselves in the position of being unable to make the mortgage payments. However, such an unfamiliar predicament may leave you wondering what you may be facing when you’re experiencing financial difficulties and can’t pay your mortgage payment. Now, while you may have a grace period, don’t become dependent on this benefit. If you haven’t already, you should review the terms of your loan regarding the terms and penalties for missed payments so you can prepare for the consequences.
If you’re aware that you won’t make the payment, make the first move and contact the lender as soon as possible. Explain your hardship and find out how they can help you through a rough period with any repayment programs and other possible avenues of resolution, depending on your specific circumstances of course. In this article, we will discuss what you can expect if you’re behind on your mortgage in Reno and surrounding areas in Northern Nevada.
Initial Missed Payment
Passing the late payment threshold, typically 10 to 15 days, means you can expect to incur late fees if you’re behind on your mortgage in the Reno region. These late fees are commonly 4 or 5 percent of the mortgage payment. Assuming that you pass the 30-day mark, your delinquent payment will appear on your credit report and drop your credit score. Many factors determine how much of a drop your score will experience; needless to say, the better your score, the more you have to lose. If you find yourself (or someone you know) in this situation and have yet to reach out to the lender, now is the time to take action.
36 Days Late
After 36 days without a payment, your servicer must reach out to you and attempt to discuss the situation causing you to be behind on your mortgage in the Reno area. And should you have reached the point of missing your first month and surpassed 45 days without making a payment, then you can expect your lender to assign someone to your case to explain the options available to you.
You can expect your servicer to have several options to help you if you’re behind on your mortgage in Reno. But, first, you must express your interest in a loan workout to your servicer. Then, you’ll be required to apply, and your servicer must request any missing information on the loan workout application within five days of submission. Finally, within 30 days, your servicer is required to provide you with the options available in your case.
Hopefully, if you are reading this you haven’t gotten to this point. But, if you have yet to submit a complete loan workout application, you can expect your servicer to begin the foreclosure proceedings if you’re behind on your mortgage in the Reno area. However, if you submit a completed application 37 days before a scheduled foreclosure sale or auction, more often than not, your servicer must check into your eligibility for a loan workout.
Suppose you are behind on your mortgage in Northern Nevada, and you submitted your loan workout application 37 days before the foreclosure sale. In that case, one of three scenarios must have occurred before your servicer could start or continue with the foreclosure process. The first occurrence would be a determination that you don’t qualify for a loan workout. Secondly, if you should reject the mortgage servicers offer for a loan workout. And the last condition, if you agreed to a loan workout and failed to live up to your word, such as missing a payment during the trial period, they may proceed with the foreclosure process. You may have as little as seven days to respond to your servicer should they make you an offer for a loan workout.
Under the condition that you submitted your loan workout application 90 days before the foreclosure sale, you can seek a review of the servicer’s decision, and they must assign someone uninvolved in the initial decision.
Whatever you do, don’t delay it any longer; it is much easier to sell your home before foreclosure proceedings begin if you choose to sell. If you haven’t contacted your lender because you believe you have no way out and need to sell, why not consider a direct sale of your home to a professional buyer like those at Envy Property Solutions, LLC. Our experienced buyers at Envy Property Solutions, LLC understand all too well that circumstances in life can be beyond our control, and they want to help you make the most informed decision and the most money you can for your home. At Envy Property Solutions, LLC, we stop and listen and are happy to answer any questions you have with no obligation. If your home is in less than perfect condition, your worries are over because most homes qualify for Envy Property Solutions, LLC to buy them directly in as-is condition. With the backing of cash, the closing can be in a matter of days or weeks… depending on your timeline, and you’ll receive an all-cash offer that you agree is fair because at Envy Property Solutions, LLC, we want you to feel good about the deal long after the closing. Ready to take the next step? Contact Envy Property Solutions, LLC at (775) 391-5236 today or fill out the short form below to get started.