Every mortgage is a little bit different, so you should look into your lender’s specific policies if you are struggling to keep up with mortgage payments. However, mortgage lenders in Texas and around the country typically allow borrowers four missed payments in a row before they begin the foreclosure process.
Most lenders try to avoid foreclosure
The foreclosure process is expensive and time-consuming for lenders, so it is usually used as a last resort. Your lender will most likely be willing to work out a payment plan for missed mortgage payments so that you can both avoid the foreclosure process.
If you miss four consecutive mortgage payments and fail to work out a payment plan, your lender may foreclose on your house. However, your lender will typically try to contact you several times before foreclosing, and there have been borrowers who have missed more than 10 consecutive payments before losing their homes.
Look at your local housing market
The state of your local housing market can sometimes have an impact on your lender’s willingness to foreclose quickly. If there are many pending foreclosures in your area, you can bet that there is also a backlog in the court system. Your lender will know that the foreclosure process will be extremely time-consuming, so they will probably let you stay in your house longer.
Try to avoid missing more than one payment
Missing just one mortgage payment is usually not that big of a deal. You will likely have a grace period to make the payment and you won’t be reported to the credit bureaus. However, missing two consecutive mortgage payments is considered a default on your loan, and your lender may start charging late fees. This is the point where your lender will typically start aggressively trying to collect payment or work out a payment plan with you. If you fail to take action and miss a couple more payments, you are at risk of foreclosure.