You could be late on your mortgage payment today, and by tomorrow have a solution that results in a quick sale of your home, extra cash in your pocket and free credit repair.
See Foreclosure Statistics
In the United States, “one out of every 2,086 housing units had a foreclosure filing”.
In New Jersey (NJ), one out of 723 housing units filed for foreclosure; Delaware (one out of 841); Maryland (one out of 1,038); Florida (one out of 1,180); and Illinois (one out of 1,277).
These are the states experiencing the highest foreclosure rate.
The metropolitan areas with the highest foreclosure rates:
- Atlantic City (AC), New Jersey (one in every 448 housing units with a foreclosure filing)
- Peoria, Illinois (one in every 622)
- Fayetteville, North Carolina (one in every 683)
- Trenton, New Jersey (one in every 703)
- Philadelphia, Pennsylvania (one in every 851).
The point of this post is to educate you on the consequences of missing your mortgage payment and provide solutions.
When does a late mortgage payment hurt your credit score?
You have up until thirty days after the mortgage payment “due date” to pay off your past-due balance (including late fees if any) before any type of negative credit reporting occurs.
When are late fees added on to a late mortgage payment
Late fees can accrue right after you miss your first monthly payment, increasing your debt and making it harder to pay off. You will accrue late fees before there is any type of negative credit reporting.
Do keep in mind, most mortgage payments are due between the 1st-15th of each month. So, you can pay your mortgage payment bill on the 5th or the 10th of the month and still remain current on payments (grace period).
If you don’t pay your mortgage payment by the 1st of the month that’s typically OK. Your lender may call and nag you over the phone about making your payment, but you are not in any jeopardy of having late fees added until after going delinquent past the 15th of the month.
If you just missed your mortgage payment due to financial difficulty now’s the time to contact us here at Golden Financial Services. We are not a mortgage company but are currently offering certain homeowners the ability to sell their home to us. We can help them pay off the debt and walk away clean. You can even include your unsecured debt in the program, which includes free credit repair.
Summary of Solution for Homeowners (to Avoid Foreclosure)
- Pay off tax lien debt within the redemption period (all states vary). If an investor has a tax lien or any lien on your property, work out a deal to pay off the lien and avoid foreclosure. For example, homeowners in NJ have up to two years for the redemption period to pay off a past-due tax debt.
- Sell your house. Here at Golden Financial Services, we may buy your house to help you avoid foreclosure. Send us an email with the details about your property at MortgageHelp@GoldenFs.org. Let us know the address of the property and how much equity you have in the home so that we can do our research. We buy houses in any condition without requiring you to fix them up! If you also owe an unsecured debt, like credit cards, we can reduce your debt down to a fraction of what’s owed, helping you with everything! Credit repair is included in the debt relief program so literally – all your financial problems can get addressed right here at Golden Financial Services.
- Use a Mortgage Debt Repayment Plan offered by Fannie Mae or your mortgage company.
- Loan modification with a top rated company that charges zero fees until the loan is modified (According to the Federal Trade Commission, it’s illegal for a company to charge you fees before modifying your home loan)
Late on Mortgage Payment & Reside in NY, CA or NJ?
At Golden Financial Services we specialize in helping consumers in these states with getting out of any type of homeowner related problems.
Have a tax lien on your property? No problem. We may be able to purchase your property, pay off the tax and mortgage debt, allowing you to avoid further damage to your credit.
Benefits of selling a home if late on mortgage payments
- Pay off your debt and avoid judgments, foreclosure, and lawsuits, ultimately getting a fresh start
- Save your credit score from further damage
- Walk away with cash-in-hand, rather than you owing thousands of dollars
- Avoid the embarrassment of this information going public, as it can get listed in the newspaper right before the foreclosure
How long can you not pay your mortgage before foreclosure?
The foreclosure process can start after falling delinquent by more than four months (120 days).
In “Deed States” (like in New York), if you are late on your property taxes you can quickly lose your home to a tax foreclosure. You will receive a warning before this occurs, by law, this is required.
Fight the Tax Foreclosure in Deed States
When an investor, or your county, files for foreclosure on your property they must also:
- publish the details of the foreclosure in a local newspaper (N.Y. Real Prop. Tax Law § 1124)”
- provide you clear details in writing on how to save your property from foreclosure and how long you have to save your property (redemption period)
If either of these two actions fails to occur the judge will most likely deny the foreclosure request and you will get to stay in your home. So, if you were never served a letter explaining the details regarding the tax foreclosure and what options you have to save your home make sure to show up in court and let the judge know.
Here at Golden Financial Services, we can help you sell your home quickly and avoid foreclosure. We can even help you with unsecured debt as well through the NY debt relief program.
What’s in it for Golden Financial Services? Well, besides being able to help consumers in living their lives without debt, which is our company slogan, we will also hopefully get a profitable return on our investment. Of course, we are a business and to stay in businuess we must create revenue in some way or another. Having said that, we believe in being an honest business. And don’t take my word for it, check our credentials on your own. You can see that our company is A+BBB rated and have lots of happy client reviews all across the internet.
Fight the Tax Foreclosure in Lien States
In states like New Jersey, these are lien states. If you are late on property taxes a lien against your home can be sold to an investor. The investor will then tack on up to 24% in fees and interest, not counting court costs. You will then have a redemption period of two years to pay the investor back the entire amount they paid, plus up to 18% interest, just to save your property from foreclosure.
How to Get Assistance?
Whether you are late on mortgage payments or property taxes your best solution is to sell your home and get into a more affordable living condition. By selling your home you can avoid foreclosure and further damage to your credit.
Let us know the address of your property, how much equity you hold and all relevant details. One of our advisors will then contact you regarding options.
Mortgage Repayment Plan
Loan Modification, Does it work?
Recently, the Federal Trade Commission made it illegal for loan modification companies to charge fees prior to the loan getting modified and reduced.
In the past, hundreds of loan modification companies charged high fees and never modified the consumers’ loans, leading to millions of consumers losing their property all across the nation. Each mortgage company has their own policies, which is why you are better off using the option above–”Mortgage Repayment Plan” on your own.
If you do decide to use a loan modification company just make sure that they are reputable and have a high BBB rating.
Here are the different solutions a loan modification company may offer:
Principle reduction: this is like a debt settlement program for your mortgage debt. The loan modification company will negotiate with your mortgage company to reduce the amount owed. Keep in mind, you could owe taxes on the amount saved. Any time you settle a debt for less than the full balance owed, you will have to pay taxes on the amount saved. Your accountant could file a form #982 to illustrate insolvency, where your tax debt would get eliminated. (Reduction of Tax Attributes Due to Discharge of Indebtedness). Again, the mortgage company is not required to reduce your debt so this option does not always work.
Lengthen the term: a fifteen-year mortgage can be extended to thirty years lowering the payment but resulting in more interest owed.