How soon after I miss a house payment will the bank begin foreclosure proceedings?
This varies from state to state and lender to lender, but most lenders don’t start foreclosure proceedings until you’ve missed four or five payments. Before taking back your house, most lenders would rather: • rewrite the loan • suspend principal payments for a while (that is, you pay interest only) • reduce your payments, or • let you miss a few payments and spread them out over time. If your loan is owned by one of the giant U.S. government mortgage holders, Fannie Mae or Freddie Mac, foreclosure can be slower. Fannie Mae and Freddie Mac often work with homeowners to avoid foreclosure when a loan is delinquent. If your loan is insured by a federal agency, such as the Department of Housing and Urban Development (HUD) or the Federal Housing Administration (FHA), the lender may be required to try to assist you in preventing foreclosure.
