February 3, 2011
We’ve discussed a great deal of information here about FHA loans and foreclosure avoidance, including time lines of foreclosure proceedings and other details. Some borrowers make the wrong assumptions about foreclosure and their FHA mortgage, and it’s very important to have all the facts before a payment is missed. What are the consequences of missed payments and how long does it take before the bank starts foreclosure proceedings?
While your lender won’t move to foreclose after a single missed payment, the FHA official site warns borrowers against making assumptions. “Do not assume that your mortgage problem will quickly correct itself. Don’t lose valuable time by being overly optimistic. Contact your mortgage lender to discuss your circumstances as soon as you realize that you are unable to make your payments.”
There are some items you’ll need to gather when making that first call to the lender. Some borrowers have trouble finding the contact information for their loan officer, but you can locate contact phone numbers and e-mail addressed associated with your loan on your monthly mortgage bill or your FHA mortgage payment coupon book.
When you call the lender, it’s a good idea to have your loan account number handy, plus supporting information to explain why you are having trouble making your FHA insured loan payments. The lender may ask for supporting evidence to help you, so be prepared to mail or fax copies of your supporting documentation. Never send originals, as you may need them later.
If you haven’t missed a payment yet, calling ahead is a very good idea, but if you’re calling after one missed payment or more, can you afford to make a partial payment on the delinquent loan amount? If so your lender may in a better position to help you going forward. It may be a difficult sacrifice to make, but an important one to decide upon before you make the call.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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