Today I would like to talk about when a mortgage payment is considered late and what could happen.
Mortgage notes typically carry a 15 days grace period and some people play the float game from the 1st to the 15TH of each month. I know I have done it myself in thre past.
On the 16TH day a late fee is tacked on and maybe a gentle remainder call from the lender.
On the 30TH day it changes and the borrower is considred in default. On the 45TH day you may be receiving more phone calls to get in touch with the lender.
60-90 days have elasped since you missed your last mortgage payment and now the lender
will send out a notice of default letter, most of the times by certified mail. Giving the borrower a finite period to cure the situation.
Foreclosure is a legal event and there must be benchmarks that must be met. Once the remedial period has past the collection department will refer the file to their foreclosure department who will foward the file to a local attorney's office. Please note during this phase serious late fee's and legal fee's may be accuring.
My illustration is not by any means definite process, but an example of how it could happen this way, remember the lenders have programs to help homeowners who are in a distress situation.
If you just need help or have some questions please feel free to contact me by text,email or my phone.
Thanks for reading