Key takeaways
- Call your servicer before or right after the first missed payment. Early options are the most flexible.
- Your servicer must try to reach you by day 36 and send written information about options by day 45.
- Foreclosure generally can’t start until the loan is more than 120 days past due.
- A free HUD-approved housing counselor can help at every stage.
The first missed payment
Most mortgages have a grace period, often around 15 days, before a late fee applies. If you know you’ll miss a payment, call your servicer before it’s due. Explain what happened and ask what help is available. Write down who you spoke with, the date and what they said.
What happens at each stage
| Days late | What typically happens | What to do |
|---|---|---|
| 1–30 | Late fee after the grace period. Reminder calls and letters. | Call your servicer. Ask about forbearance or a repayment plan. |
| 30–60 | Usually reported to credit bureaus. By day 36 the servicer must try to reach you; by day 45 it must send written information about options. | Request a loss-mitigation application. Contact a HUD-approved counselor. |
| 60–90 | More late fees. A notice of default (breach letter) is common, giving a deadline to catch up. | Submit a complete application. Get a reinstatement quote. Review your budget honestly. |
| 90–120 | The loan may be referred to a foreclosure attorney once the 120-day mark passes. | Compare all options, including selling if keeping the home isn’t realistic. |
| 120+ | Foreclosure can begin: a 30-day notice of sale and four weeks of newspaper ads before the first-Tuesday sale. | Act fast. See how to stop foreclosure in Georgia. |
The servicer contact requirements come from federal servicing rules (12 C.F.R. § 1024.39), and the 120-day rule from 12 C.F.R. § 1024.41. Some loans, including certain small-servicer loans, can differ, so read every letter you receive.
Submit a complete loss-mitigation application
A loss-mitigation application asks your servicer to review you for every option it offers, including repayment plans, forbearance, modification, short sale and deed in lieu. The servicer must tell you if anything is missing. Send copies of everything, keep proof of delivery, and respond quickly to requests. A complete application gives you important protections, especially if it arrives more than 37 days before any sale.
Decide honestly: keep or sell?
If your hardship is temporary, a repayment plan or modification may keep you in the home. If the payment simply isn’t affordable anymore, selling while you still control the timing can protect your equity and your credit better than waiting. There’s no wrong answer, only the one that fits your situation. If selling might be right, talk with Jerry privately.
What to avoid
- Ignoring letters or calls. Deadlines in those letters matter.
- Paying anyone upfront to negotiate with your lender. See foreclosure rescue scams.
- Signing over your deed to anyone outside a real closing.
- Draining retirement savings without getting advice first.
This guide is general information for Georgia homeowners, not legal, tax or financial advice. Laws and lender practices change, and every situation is different. Talk with a HUD-approved housing counselor (800-569-4287) or a Georgia attorney about your circumstances.