Foreclosure Homes How Many Times Can You Default? On How Many Homes?

How many times can a home go into foreclosure before the bank finally gives up and stops accepting any payments? For homeowners who have fallen behind more than once, or who own more than one property and are contemplating foreclosure on several houses, this is a serious issue. Thankfully, there is little real danger that a mortgage company will simply stop accepting any payments, even if the owners fall into foreclosure numerous times.

Homeowners can experience their house going into foreclosure as many times as they face a hardship and run out of money to pay the mortgage for a period of months. The bank will wait until the owners are usually 3-6 months behind, and then it will begin to file the foreclosure paperwork in the local courts. If the homeowners pay the arrears back before the property is auctioned off, then the foreclosure process has to stop for the time being. Of course, if they fall behind again, the process will start up from the beginning.

No matter how many times they fall behind during the life of the mortgage loan, though, it is unlikely that the bank would just stop taking any payments from the owners at all and call in the loan. After all, the original mortgage contract states that the borrowers have to pay a set amount of every month to keep the house or incur penalties and other charges if payments are missed or the house is foreclosed on. There is nothing in the loan documents that would allow the mortgage company to refuse to take the monthly payments any longer, except when the house is actually the subject of foreclosure proceedings.

It would also be difficult for the bank to prove to a court that they are entitled to anything besides the homeowners’ monthly payments if they can make them on time and pay back any amount they have fallen behind. Just because they may have fallen behind in the past does not mean that the bank can just give up on the loan completely and stop accepting even on time payments – as long as the homeowners made up the payments later on, the lender got everything it was due, plus a lot of accrued interest, late fees, court costs, and other charges.

In fact, if borrowers’ houses are going into foreclosure or falling behind quite often, but they are able to pay back the arrears eventually, then these types of homeowners may be a great client from the bank’s perspective. With all of the extra fees the lenders are charging to the loan when homeowners miss a payment, the effective interest rate may be much higher than the owners believe, which translates into higher profits on the frequently defaulted loan for the lender.

Of course, that might also be a good reason to try and keep up on the payments at all times, or just let one house go if it is not affordable. Selling or giving the bank a deed in lieu of foreclosure on one property might let the homeowners off the hook on one particular house, while allowing them to keep the other properties and make the payments a lot more consistently. It makes little sense to keep falling behind in mortgage payments just to keep one house out of foreclosure – eventually, with all of the extra charges, it may just become too expensive to get back on top of a mortgage.

Instead of routinely falling behind on one mortgage and then falling behind on other bills to pay back the arrears on the house loan, it may be better for homeowners to find more permanent solutions that will help them stop foreclosure. Eventually, it will become too cost prohibitive to keep falling behind on the house loan, and the bank may take advantage of a sustained hardship to force a full foreclosure through the court system. For this reason, homeowners should consider better options and possibly finding solutions that will lower their bills so that they can keep at least one roof over their heads.

The ForeclosureFish website has been created to provide homeowners in danger of losing their houses with relevant and important foreclosure help and resources. The site describes various methods that may be used to save a home, such as foreclosure refinance loans, mortgage modification, short sales, bankruptcy, and more. Visit the site to read more articles about how foreclosure works and how the process may be avoided before it is too late: http://www.foreclosurefish.net