Are You Wondering What the Bank Will Do Now that You're Three Months Late with Your Mortgage Payments?

When a homeowner is 3 months payments behind in their monthly payments to the bank, the bank has the right and obligation to start a foreclosure proceeding. This is the only way the bank can reclaim its asset – the house. The bank has to go through this process to get the homeowner's name off the deed and the banks' name on the deed.

Landlords evict to remove an occupant from the house, banks foreclose.

The bank really doesn’t want the house back. They are in business to make money – not buy houses.

And they want you to live in the house and take care of it as long as possible.  If you move out, vandals may break in, steal the copper pipes, steal the AC unit and do even more damage, costing the bank more money to get somebody else to live in the house once the foreclosure process does get you out.

So you, even though you've missed your payments, you should be staying in the house.  It's your house.  If you can afford the utility payments STAY IN YOUR HOUSE.  Stay there as long as possible so nobody breaks in.  And Save Your Money!  Save whatever amount you can so when you do move out, you can have a much better start.

• Pay for movers
• Pay a security deposit for you new place to live
• Use this as a chance to better your life.
• Start over with a new attitude

The bank really would rather you protect your current home - even if you're not making payments to them - so when they get it back, it is in as good of condition as possible. 

The want a performing loan, meaning they want someone to be paying the monthly payments as agreed. When all else fails and the homeowner can’t make those payments do to loss of a job, death in the family, whatever the circumstances, the bank will foreclose.

Remember that the bank doesn’t want the house back. So they will deal to keep that from happening. They can restructure the loan with the homeowner which is called forbearance or a Loan Modification, they can sell the property at a loss just so they don’t gain ownership through the foreclosure process. This is often called a short sale.

Learn more about the short sale on the Short Sale Page .