What Happens After You Get the Certified Letter From Your Mortgage Company to Leave?

The foreclosure process is marked by a series of legal milestones. Once you officially default on your mortgage agreement, your lender notifies you through a Notice of Default sent via certified mail. The Notice of Default includes important information to help you find ways to remedy your past-due mortgage or make preparations to leave your property.



When you receive a letter from the mortgage company giving you a fixed amount of time to repay your mortgage debt or risk foreclosure, the tone of the letter can be intimidating, making it appear as if losing your home is inevitable. However, homeowners have the right to reinstate their mortgage loan. The certified letter you receive from the mortgage company includes a date by which you must bring your past-due account balance current. If you pay the past-due amount, your mortgage loan is reinstated. Reinstating your mortgage loan means you are back in good standing and the threat of foreclosure is eliminated.


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Failure to Pay

If you are unable to pay the past-due balance in full, the lender can begin the foreclosure process. The length of time between foreclosure filing and the date you are required to leave your home varies by state. In judicial foreclosure states, the foreclosure process requires more time as the lender must get approval from the court prior to beginning the process. In a nonjudicial foreclosure state, the lender can simply begin foreclosure once you default on your loan agreement. Lenders are usually still willing to negotiate payment arrangements with you after foreclosure is filed to avoid taking back your property. The ultimate goal of the lender is to get the debt repaid, not take ownership of real estate.


Exploring Options

Notice of Default letters often contains information for homeowners experiencing hardship. Mortgage assistance options are the best way to help get your mortgage loan reinstated if you are unable to pay the balance in full. One of the major benefits to seeking out mortgage assistance is that the threat of foreclosure is temporarily eliminated while your application is in review. This means more time to find ways to pay your past-due balance even if your mortgage assistance request is denied. Generally, mortgage assistance reviews take between four and six weeks.



Receiving a certified letter from your mortgage company should prompt you to immediate action. While you are not obligated to leave immediately, failure to pay the balance stated in the letter will result in the loss of your home. Some homeowners choose a deed in lieu of foreclosure to voluntarily give up their homes and avoid the stain of foreclosure on their credit report. A deed in lieu of foreclosure occurs when you give the lender your property in exchange for debt forgiveness. When you move out of the property, you have no further financial obligations to the lender.