Dreading missed payments: How many to foreclosure?

Counting missed payments, afraid of the edge.

You haven't told anyone you're counting. One payment has already slipped, and you can feel next month's starting to go also. Somewhere in the quiet, you began measuring. How many can I miss? How far away is the actual edge? I want you to know that counting is not giving up, and it is not denial. It is you trying to shrink fear to a size you can plan around, and that is one of the sanest things you could be doing right now. So let's count together, with the real lines instead of the imagined ones. There is a real number, and you deserve to see exactly where it sits.

The edge is farther than it feels

Here is the part almost no one tells you: the law doesn't count missed payments at all. It counts days. Under federal servicing, you become what the rules call delinquent the day a payment is due and goes unpaid (12 CFR 1024.31). The line that matters sits much deeper than one bad month so if you are here you have time. Legally, your servicer cannot start a foreclosure, cannot even file the first paper of one, until your loan is more than 120 days behind (12 CFR 1024.41(f)(1)). So, if nothing gets caught up along the way, that line arrives a little after the fourth missed payment in a row. One missed payment cannot put you in foreclosure, period. Neither can two, or three. And because the count runs from the oldest payment still unpaid, it is not a trapdoor that locks behind you. The day you are fully caught up, you are simply not behind anymore and foreclosure is nowhere in sight. The distance you've been afraid to measure is real, but I hope it is longer than the fear has been telling you.

It cannot start behind your back

Underneath the counting, I think there is a quiet and rightful worry. Sure, you know the timeline, but now you're wondering if there is anyone to help fix it or if you are on your own again? Let me take that one off you. By day 36 of being behind, your servicer is required to try to reach you and tell you about the options that exist for people in your spot. These options with your servicer are called loss mitigation and us at Transitus can help you see other options your servicer won’t be able to provide. I know those calls and letters can feel intrusive but they are honest help.

Here in Colorado, a foreclosure doesn't begin with a phone call or a threatening tone. It begins as paperwork, a document called a notice of election and demand that is filed with the public trustee (CRS 38-38-101). Before this foreclosure filing, they must mail you a notice at least 30 days prior (CRS 38-38-102.5). So yes, until that filing exists, you are not in foreclosure, no matter how frightening the envelopes look. And even if the worst day came and that paper was filed, it starts a process with months still inside it, not a sale the next morning. I will say, it is still important to move with urgency even before a formal foreclosure as it’s better for you in almost every way.

The smaller prices you pay along the way

Before we say you're behind, I want to say one quick note. Mortgage payments are typically due on the 1st of the month. So, if you missed that, you generally have until the 15th before you are considered delinquent and a late fee can be charged. If you have missed this window, you are okay but each month a payment stays missed, another late fee can be added. This can build up the longer it waits, making it harder to save your home from foreclosure. Also, once a payment is 30 days past due, it can be reported on your credit, and even a single late payment can pull your score down. If that lands heavy, I see it, and I'm sorry, because you are already carrying enough right now. But look closely at what these costs are and what they are not. They are fees and credit bruises. They are not a foreclosure, and they do not move the date a single day closer. I am not telling you the misses are free, and I won't pretend they are. I am telling you what each one actually costs, so the plan you're building rests on true numbers instead of guesses.

You can stop counting for tonight

You came here alone, trying to turn a fear into a number you could live with. Now you have the real ones, and there is more room inside them than the fear was giving you. If you ever want to see your options for your own home, we at Transitus are happy to show you. But for tonight, at least, you can put the counting down and get back to your life.

This article is general information from Transitus, not legal, financial, or tax advice. Foreclosure rules change and every situation is different. Transitus is not a foreclosure consultant (CRS 6-1-1103) and charges no upfront fees. For free help, call the Colorado Foreclosure Hotline at 1-877-601-HOPE or consult a Colorado real estate attorney.