What to Do After a Missed Mortgage Payment
Call the mortgage servicer using the number on your statement. Ask for the total amount needed to bring the account current, which loss-mitigation programs are available, and what documents are required. Keep copies of everything you submit and notes from each 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.
Mortgage Forfeiture can inspect a property in its operating area, compare the condition with available sale paths, and prepare a written direct-purchase offer when the records support one. Roger does not control the servicer, the court, or credit reporting. A closing date is set only after the title company confirms the payoff, title, ownership, lien, and signature requirements.
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.
- Indiana foreclosure sale guide explains what a property buyer can and cannot promise.
Frequently Asked Questions
Can I sell after missing mortgage payments?
Often, yes. The closing must satisfy the required mortgage payoff and other title obligations. If proceeds are insufficient, lender 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 remain. The effect depends on the full credit file and reporting.
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, contact the servicer and an attorney, and allow time for payoff and title work.