By day 15, the mortgage payment is usually considered officially late. At this point, Homeowner will probably start getting calls or letters from the bank basically saying Hey, what’s up? Where’s our money? If the home owner is having some kind of problem and he can convince the bank its temporary thing he’ll be rectifying very soon most lenders will usually be pretty agreeable to working with the home owner at this point. It’s early in the game, and they haven’t yet begun to get too nervous that the borrower will default on the loan. They may be offering options like changing the due borrower will default on the loan. They may be offering options like changing the due date, which can give the borrower a short window to catch up on his payments. Generally, the first thing a bank would be willing to do is accept the payment on a specific date in the very near future. They may or may not willing to waive late fees. ´
After the borrower has passed his due date he will start incurring late charges. These vary from bank to bank, but have one common theme they seem to add up at an amazing speed, causing the amount due to soar pretty quickly. At this point, if the borrower pays only the regular payment without taking care of the extra charges, the account is still considered past due.
Usually somewhere between Day 45 and Day 60, the lender will send a “demand” letter by certified mail. This letter states that the borrower has officially breached the mortgage contract. Generally, the term “foreclosure” will be mentioned frequently and in urgent terms. The demand letter will specifically spell out what the borrower needs to do to stop the process at this point. It also will provide details of any other options or sources of assistance that may be available.
Even if a primary mortgage is current, homeowners can still face foreclosure if they fall behind on a secondary mortgage or home-equity loan. Bottom line, homeowners need to pay close attention to the status of any loan secured by a home or property.
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By day 15, the mortgage payment is usually considered officially late. At this point, Homeowner will probably start getting calls or letters from the bank basically saying Hey, what’s up? Where’s our money? If the home owner is having some kind of problem and he can convince the bank its temporary thing he’ll be rectifying very soon most lenders will usually be pretty agreeable to working with the home owner at this point. It’s early in the game, and they haven’t yet begun to get too nervous that the borrower will default on the loan. They may be offering options like changing the due borrower will default on the loan. They may be offering options like changing the due date, which can give the borrower a short window to catch up on his payments. Generally, the first thing a bank would be willing to do is accept the payment on a specific date in the very near future. They may or may not willing to waive late fees. ´
After the borrower has passed his due date he will start incurring late charges. These vary from bank to bank, but have one common theme they seem to add up at an amazing speed, causing the amount due to soar pretty quickly. At this point, if the borrower pays only the regular payment without taking care of the extra charges, the account is still considered past due.
Usually somewhere between Day 45 and Day 60, the lender will send a “demand” letter by certified mail. This letter states that the borrower has officially breached the mortgage contract. Generally, the term “foreclosure” will be mentioned frequently and in urgent terms. The demand letter will specifically spell out what the borrower needs to do to stop the process at this point. It also will provide details of any other options or sources of assistance that may be available.
Even if a primary mortgage is current, homeowners can still face foreclosure if they fall behind on a secondary mortgage or home-equity loan. Bottom line, homeowners need to pay close attention to the status of any loan secured by a home or property.