The time between an original late mortgage payment and a foreclosure varies greatly and can depend on a variety of factors, including the particular lender that owns the mortgage. According to the Texas Department of Housing and Community Affairs, however, foreclosure processes can begin in as little as 90 days.
According to the TDHCA, a mortgage payment is considered delinquent if it is not paid by the agreed upon payment date each month. Many times, the payment date is the first of the month. Most mortgage providers do offer a grace period, which means late fees are not assessed until payments are delayed 15 days past the original due date.
Mortgage providers mail a late notice after the 15th day and may also begin making phone calls regarding the late payment. If payment is not made by the 30th day after payment was originally due, the homeowner is considered in default.
At the time default occurs, most lenders mail out another notice and many report the issue to credit bureaus. After 60 days from the original date the payment was due, if no payment has been made, the lender may begin the foreclosure process.
At this time, actions can differ greatly according to homeowner situations and individual lender. There are things that can be done to stop a foreclosure at this point, but lenders may stop accepting partial payments or might even demand that homeowners pay the full portion that is past due. The TDHCA points out that lenders don’t actually want to own your home, and it benefits them to work with you to create a situation where you can make the payments. At the same time, if you take no action, your lender will continue with the foreclosure.
Source: Texas Department of Housing and Community Affairs, “How Does Foreclosure Work?” accessed Jan. 27, 2015