CLICK HERE for a .pdf copy of Utah Housing Corporation's "Foreclosure Prevention Workbook"

Excerpt:

Process from Late to Auction Date 180 Days

Although you are late from 1 st day after the due date, the COLLECTIONS, sometimes referred to as the LOAN SERVICING Department, of your mortgage company will start calling you between the 16 th and the 30th of the month.

What happens after I am 30 days late?

What is the Collections or Loan Servicing Department?

Collections is a loan servicing division of the mortgage company that accepts and applies your payment each month, tracks any late fees, monitors and when included in your payment, will pay the taxes and insurance when due. They will contact you when payments are missed. The “collections” or “loan servicing” department will start calling you to collect the past due payment.

What happens after I am 60 days late?

On the 61 st day, the loan payment is 2 months past due, and if the Collections department has not been able to collect or make acceptable payment arrangements with you, your account will be turned over to the LOSS MITIGATION DEPARTMENT also know as HOME PRESERVATION AND WORKOUT DEPARTMENT.

What is Loss Mitigation?

This is a division of the mortgage company that will work with you on an acceptable plan to get you back on track with your mortgage payments (Home Preservation). You will begin to receive letters requesting that you call them. This is the period where you will have more options available to you. They will make many attempts to contact you during this period.

What happens after I am 90 days late?

On the 91 st day, a third party TRUSTEE (typically an attorney) takes over your delinquent account. The Trustee will send a “Notice of Default” stating that the property will be sold 90 days from the date the Notice was filed and recorded. There will be a notice published in the newspaper once a week for the four weeks preceding the sale. You will typically receive a “Notice of Trustee Sale” about four weeks prior to the sale date detailing the actual date your home will be sold.

What is the process?

Mortgage company will not send you any more letters. It is now totally up to you to contact them directly as soon as possible, or through a U.S. HUD certified housing counselor.

*Unless you act quickly, your house will be sold at auction on the date specified. NOTE: The total number of days of delinquency (90, 120, 180) depends on your mortgage servicer.