After how many missed payments do lenders typically begin foreclosure proceedings?

Lenders typically begin foreclosure proceedings after three consecutive missed payments. This timeframe allows the lender to adhere to their internal policies and legal requirements while giving the borrower a chance to catch up on payments. When a borrower misses a single payment, there may not yet be sufficient cause for the lender to initiate foreclosure, as many borrowers may resolve the situation shortly thereafter. After missing two payments, the lender is still likely to communicate with the borrower to explore options, such as setting up a payment plan or discussing alternative solutions.

However, by the time the borrower has missed three payments, the lender may consider the situation more serious and a potential risk to their investment. As a result, they often have policies in place to start the foreclosure process at this point, as it is viewed as a significant signal that the borrower may not be in a position to make future payments. This standard practice reflects the lender's balance between protecting their financial interests and allowing borrowers a reasonable opportunity to remedy their payment situation.