Default on a home loan occurs when the borrower defaults, or violates terms, in a mortgage contract. One of the most common forms of borrow’s default is the failure to make payments or making late mortgage payments. A late payment doesn’t necessarily put the loan in default. Generally, when a homeowner misses one mortgage payment, it is normally considered late and the lender will typically apply a late fee. When a borrower misses a subsequent payment, then the mortgage will usually go into default. If a borrower continues to miss mortgage payments, the home will eventually go into foreclosure. It is easier to work out a resolution before a home goes into foreclosure. Try to resolve the issue as soon as possible before the bank processes further into the foreclosure process.
Make sure you follow these three steps in trying to avoid foreclosure after you have received a notice of default:
- Contact your mortgage provider. When you contact them have your monthly income and debts, assets and an explanation of your situation. They are humans and you may need to appeal to their human sensibilities. We all come across tough times and unexpected, unfortunate situations arise so make sure you ask about all the available options to you, such as refinancing or a loan modification. Also, HUD has several Making Home Affordable programs that address a variety of mortgage needs.
- Call a local HUD-approved housing counselor. Housing counselors are trained to help you understand foreclosure law and available options.
- Consider your options. If you are unable to keep your home, you may want to consider a deed-in-lieu or selling your house to avoid a foreclosure on your credit report.
If you find yourself wanting to or needing to sell your Washington DC property fast and for a fair price then contact Swing Real Estate at 202-888-0560! Let us Help!