Banks don’t automatically take action on a missed payment after the due date has past. Generally, they factor in a grace period into their processing system that will allow the homeowner a few extra days to make their payment. If the payment is made within the grace period, the homeowner may just incur a small fee and successfully stop any further action.
If the bank does not receive payment within a few weeks of the missed payment, then they will send a Notice of Default. This is intended to make the homeowner aware that payment has been missed and that the bank plans to take action if they do not receive payment right away.
Some banks send letters that are written more tactfully than others. Some banks send a letter that’s straight to the point, hoping that the homeowner will reply quickly out of fear. Regardless of how the letter is phrased, it will provide the same general information. The letter will advise that the bank has decided to accelerate the note and mortgage, and it will also provide a definite timeframe by which the homeowner needs to pay the owed amount to avoid foreclosure.
After the notice of default is received there is still a short window of opportunity to avoid having a foreclosure action filed, provided the homeowner has the funds available to pay the owed amount. However, if you do not make the payment, then this is the ideal time to speak with a foreclosure defense attorney and prepare a plan to save your home from foreclosure.
Don’t let the bank catch you unprepared when they file the foreclosure suit. The consultation with a foreclosure defense attorney at Graham Legal is always free, during our meeting we will provide you with the necessary tools to achieve your goal.