What to do after a missed mortgage payment
Call the servicer at the number on your statement. Ask for the total needed to bring the account current, which loss-mitigation programs are open to you, and what documents they need. Keep copies of everything you send and notes from every call.
Federal servicing rules generally restrict the first foreclosure filing until a residential mortgage is more than 120 days delinquent, subject to exceptions. That is not a promise that every borrower has the same timeline. Loan type, prior loss-mitigation activity, bankruptcy, court filings, and other facts can change the analysis. The Consumer Financial Protection Bureau explains loss mitigation and how to find help.
Use the response deadline on the summons and the date in any sheriff-sale notice. Contact an Indiana attorney or HUD-approved housing counselor promptly. A property-sale conversation does not stop a foreclosure case or extend a deadline.
Options That May Keep the House
Options That Involve Selling
- Traditional listing: seeks broad market exposure but may include preparation, showings, buyer financing, appraisal, inspection, and commission.
- Direct purchase: may remove a buyer-financing contingency and formal inspection contingency, but title, payoff, liens, ownership, and timing still have to be cleared.
- Short sale: may be considered when the expected sale proceeds will not cover the debt and closing requirements. It requires written lender approval and can have tax, deficiency, and credit consequences.
- Deed in lieu: transfers the property to the lender only if the lender accepts it. Ask about deficiency, tax, occupancy, and credit terms in writing.
How to Compare a Sale With Keeping the Home
- Obtain a current payoff. Include arrears, interest, advances, and fees shown by the servicer.
- Estimate sale costs. Compare repair, holding, commission, concession, and closing assumptions for a listing with the terms of any direct offer.
- Check title and ownership. Taxes, judgments, probate, divorce, bankruptcy, or missing signatures can affect closing.
- Ask for an estimated settlement statement. It should show the proposed payoffs, taxes, costs, and estimated seller proceeds.
- Compare credit and legal consequences separately. A completed sale may avoid an additional foreclosure event, but accurate late payments and court filings may remain.
Roger looks at the house, compares its condition with the ways it could sell, and prepares a written as-is offer when the records support one. He does not control the servicer, the court or credit reporting. If you accept, the title company confirms the payoff, title, ownership, liens and signatures, and the closing date is set after that. Mortgage Forfeiture charges no company fee or agent commission; the payoff, liens, taxes and prorations still come out of the price.
Indiana process resources
- Indiana Code Chapter 32-30-10.5 contains Indiana's mortgage-foreclosure prevention framework.
- CFPB homeowner assistance explains servicer contact, counseling and scam warnings.
- Our Indiana foreclosure sale guide explains what a buyer can and cannot promise once a case is filed.
Frequently asked questions
Can I sell after missing mortgage payments?
Often, yes. The closing has to cover the mortgage payoff and the other title requirements. If the proceeds fall short, the lender's approval may be needed.
Will selling remove late payments from my credit report?
No one can promise that. A completed sale may avoid an additional foreclosure event, but accurate late payments and court filings may stay. The effect depends on your full credit file.
What if a foreclosure lawsuit has already been filed?
A voluntary sale may still be possible before the sheriff sale, but a contract alone does not stop the case. Confirm the court deadlines, call the servicer and an attorney, and allow time for payoff and title work.
Could the servicer have made a mistake on my account?
It happens. If the amount claimed, the escrow or the loss-mitigation handling looks wrong, our servicer errors checklist explains what to document, how to send a written notice and where to complain.
Related guides
- Five options to review before an Indiana sheriff sale
- Selling a house in foreclosure in Indiana
- Selling a house during bankruptcy in Indiana
- We buy houses in Jeffersonville and Southern Indiana
General information only; not legal, credit or financial advice.