If you encountered a financial crisis that made you unable to make payments on your home loan, you may be at risk for foreclosure. A lender takes back possession of a property when a mortgagor can no longer make payments through this process. In such situations, your loan is said to be "in default." Facing a foreclosure threat on your Wisconsin home can be highly stressful even though the threat does not necessarily mean it will happen.
You may have several options available to avoid foreclosure. Sometimes, however, it's difficult to see what's right under your nose in such situations, meaning, you may feel so overwhelmed and worried that you aren't even aware that you have options. If you're concerned about possible foreclosure, it can help to seek financial counseling or speak to someone who has helped others find viable solutions to similar problems.
Falling behind in payments?
If you missed your last mortgage payment, it may not mean that you're going to lose your home. You're definitely not the first person to struggle to make timely payments, especially if extenuating circumstances have caused your financial distress. It's always a good idea to confer with your lender if such problems arise to discuss potential alternatives for delayed payment.
90 is the critical number
If you're a week or several weeks behind on your mortgage loan payments, you may be able to rectify the problem by letting your lender know when you'll be sending a payment. If your payments are 90 days late or beyond, however, you lender may begin the foreclosure process. It's not as if you will have a house one day and lose it the next without any notice though.
In fact, your lender must send written notice that you are behind in payments. Your lender must also notify you if the plan is to file a Notice of Default. From the time you receive a Notice of Default, you typically have 90 more days before the actual foreclosure process begins.
Some people sell their Wisconsin homes to avoid foreclosure. This typically happens through a short sale process. Others are able to get lenders to agree to alternate payment plans. If you're facing threat of foreclosure, you may also want to consider various types of bankruptcy as potential options that may help you keep your house while obtaining debt relief at the same time.