You will receive an information packet from your lender when your loan payment is 35 to 45 days late.  The information packet will include a toll-free number to call your lender. 

Please respond to this mailing and all other contacts from your lender.  You should prepare to be able to explain your financial situation so that your lender can help you. 

You should also stay in your home to remain eligible for other financial aid programs.

At this stage, your lender will most likely transfer the servicing of your loan to a special servicer who will decide how to handle your loan.  It is extremely important to be cooperative and stay on the good side of the special servicer because the special servicer will have the power to decide the best workout strategy for your delinquent loan. 

A good relationship with the special servicer can lead to a delay of the foreclosure process, which is very good for you.

The U.S. Department of Housing and Urban Development (HUD) will also contact you with information that will be very helpful during the process.  Go to www.hud.gov for more information.

When your loan is delinquent, you may receive a letter that states that your entire loan is due.  Such a letter is called a demand letter or notice of acceleration.  The demand letter is based on a clause in your mortgage document that allows the lender to seek full payment if you are late with your loan payments.

You should seek the advice of an attorney when you receive such a letter.

When you are 90 days late on your mortgage your loan enters default status.

Once default status is obtained, the foreclosure process begins.