If you miss a single mortgage payment, you are technically in violation of your loan terms and considered to be in default. However, this doesn’t mean you need to worry about your lender immediately foreclosing on your house.
Lenders generally don’t start the foreclosure process over a single missed payment, which may have been caused by an accidental oversight.
The foreclosure timeline
In most cases, lenders will wait until three or four payments are missed before initiating foreclosure. Legally, lenders are required to wait at least 120 days after the initial missed payment before starting the foreclosure process. During this time, if payments continue to be missed, a borrower might reach four missed payments before foreclosure proceedings begin—assuming the lender acts as quickly as legally permitted.
Notice regulations
Connecticut law also establishes specific regulations for how lenders must notify borrowers before officially filing a foreclosure complaint. Lenders are required to send a notice at least 30 days prior to filing the complaint.
This means foreclosure should never come as a surprise. Missing a payment doesn’t result in an immediate foreclosure filing. Borrowers typically receive multiple notices urging them to catch up on missed payments or outlining options to avoid foreclosure.
The foreclosure process
Even after the 120-day grace period, the foreclosure process itself can take months to complete. This allows borrowers to remain in their homes for a significant amount of time before any final action is taken.
It’s important to use this time to carefully consider your legal options. For example, filing for bankruptcy might help you address other debts, making your mortgage more affordable. Be sure to fully understand all the options available to protect your home and financial future.