Being behind on payments doesn’t result in an automatic foreclosure. It’s true that many lenders start the foreclosure process when house payments are 90 days past due. If you talk to your lender immediately though, you may be able to work out a deal to avoid foreclosure.
A mortgage modification is a top solution for people who are behind on payments. Modifications help because lenders reduce the interest rate and monthly payment on your loan. This often creates a lower, more affordable payment. The past-due amount is then tacked onto the end of the home loan. A modification can bring your mortgage payment up-to-date and avoid foreclosure.
Not everyone meets the qualifications for a modification. Being behind on payments is a major criterion. Additionally, you must write a hardship letter and explain your reasons for lateness. In all, you have to present a hardship package to your lender. They’ll examine your package and make a decision within a few months. It’s not a quick or simple process, but if you’re approved, it can save your house.