How Many Missed Payments before Foreclosure in Florida?

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A positive trend is coming out of Florida, a state known for its high rate of foreclosures and evictions. Some were worried those rates would skyrocket out of control, as protections and moratoriums enacted during the COVID-19 pandemic came to an end.

Fortunately, that does not seem to be the case. Still, economists are concerned that with the national moratorium on federally-backed mortgages expiring, all states will see an increase in foreclosure rates in the near future. The question is, how long will it take before an uptick in foreclosures is seen? How many mortgage payments can you miss before foreclosure begins? 

Fewer Florida Homeowners are Behind on Their Mortgage

Florida is at the forefront of homeowners who are starting to catch up on their delinquent mortgage payments. Over the past six months, the number of homeowners delinquent in their mortgage payments dropped by one-third. Florida was outpaced by only Rhode Island and Nevada. There is less than one percentage point that separates the Sunshine State from the other two.

Currently, there are 1.45 million borrowers in the country who are 90 days or more past due on their mortgage but are not yet facing foreclosure. That stat is startling and has many people wondering just how many mortgage payments you can miss before the foreclosure process starts in Broward County. Generally speaking, you can miss four mortgage payments before falling into foreclosure, but the exact amount depends on other factors, as well.

The Policies of Your Lender

The amount of mortgage payments you can miss before you face foreclosure will largely depend on the policies of your lender. If your lender has approved a large amount of low-risk loans, you may be able to miss more mortgage payments. Your lender may also make an allowance if you have extenuating circumstances. If you have only missed one payment, your lender is much more likely to forgive it and not take further action until you have missed two or more payments.

On the other hand, if your lender has a large amount of high-risk mortgage loans, they will likely be much more reluctant to offer any extensions. In this case, you may face foreclosure if you miss just two mortgage payments. This may occur even if you are not one of those high-risk borrowers because of the standards of the lender due to the overall default risk of the pool of mortgage loans.

The Housing Market

The general condition of your local real estate market is another determining factor in how many mortgage payments you can miss before losing your home. If there are a number of pending foreclosures in your neighborhood, there is a greater chance that you can stay in your home longer. The courts and housing authorities are often backlogged when many properties fall into foreclosure at the same time. As such, they will simply not have the time to get to your case right away. There have been instances in which homeowners were able to stay in their homes after missing ten payments just for this reason.

After you have defaulted on one mortgage payment, your mortgage servicer will likely try and contact you to correct the situation. If they cannot reach you right away, they will likely try to contact you several times. If you have not paid your mortgage, your lender will usually try to contact you by the 36th day. If you have not made your mortgage payment by the 45th day, the servicer is required to contact you in writing to notify you of the options available to fix the situation.

The Timeline of a Typical Foreclosure

The timeline for any foreclosure will largely depend on the circumstances of the case, but there is a general timeline you can follow if you fear losing your home. It is as follows:

• The grace period: Most lenders will give you a 15-day grace period and if you can make the mortgage payment within this time, you will not face any further action. If you do not make your mortgage payment during this time, the case will become a bit more complex. Your lender will add late fees to the payment and may even report you to the major credit reporting bureaus, hurting your credit score.
• Default: If you miss a second mortgage payment, you are officially considered to be in default. The mortgage servicer will likely become more aggressive in trying to collect on the missed payments, and they are typically not as friendly at this point. This is often when missed mortgage payments become particularly frightening, but it is important to remember that you may still be able to contact your lender and reach an agreement. Lenders usually prefer to reach an agreement with borrowers rather than start the time-consuming and expensive foreclosure process.
• 90-day delinquency: If you are delinquent on your mortgage for 90 or more days, the situation becomes particularly serious. Your lender will likely give you up to 30 days to make the missed payments.
• Foreclosure: If you do not make the missed payments within the 30-day period offered by the lender, foreclosure proceedings will likely begin. By this time, you will have missed four full payments. However, there are defenses to foreclosure, and receiving a notice does not mean you will lose your home.

If you’re wondering what is the best option after falling behind on your mortgage payments, watch the video our foreclosure lawyers have prepared.

Our Foreclosure Defense Lawyers in Broward County Can Help Save Your Home

The foreclosure process is not immediate for homeowners who are behind on their mortgage, but it is always a real possibility. If you fear losing your home, our Broward County foreclosure defense attorneys can help with your case. At Loan Lawyers, we have helped thousands of people remain in their homes and avoid the foreclosure process, and we want to put our experience to work for you. Call us today at (954) 523-4357 or contact us online to schedule a free consultation so we can get started on your case.