can they foreclose???

judyidle · Joined: 29 Oct 2009 Posts: 1 1.37 Dollars($)

we are 35 days behind in our mortgage payment. We received a breach of contract letter by certified mail. The letter stated that we have till 11-11-09 to pay the past due month and current month plus all late charges. We recently applied for loan modification woth our mortgage company, and they said that that will be taken in consideration as far as paying the total due by 11-11-09. We do not have the total due for 2 months plus late charges. Can they start freclosure proceedings aftr that date if not paid in full??

jenkin7 · Posted: Thu Oct 29, 2009 10:27 pm Post subject:

Hi judyidle,

The lender can start foreclosure proceedings on your property if you do not pay off the due payments and late charges by the specific date. However, in most of the cases, lenders do not foreclose on the property unless you are at least 3 months behind on your payments. But that does not guarantee your lender will also do the same. Talk with your lender about the status of your loan modification request and check out if you qualify for it, because this is the option that can help you save the home.

loanday123 · Joined: 28 Oct 2009 Posts: 16 3.83 Dollars($)

This does not take into account that depending on how long you have had your loan you may end up not ever paying principal off. In the beginning of the loan period more of the payment goes to interest. If you are shorting the payment, little to nothing is going to the principal. In a case like this, you will end up owing more interest as the principal is never reducing.

gmakerley · Posted: Fri Oct 30, 2009 1:25 pm Post subject:

judy, i don't believe you need to be as nervous as you clearly are. inasmuch as you're only a bit more than a month behind, you're clearly not in much jeopardy of a foreclosure action taking place so quickly. no lenders desire to take a home from a borrower; they wish to work with you so as to avoid that. keep bugging them about the modification request; that's in your best interest, and they'll have a hard time dealing with a court if they have your request for that modification in hand at the same time they seek foreclosure. it's not going to happen.

as for loanday...what is this "not very paying principal off." only if a borrower has a loan that calls for negative amortization (non-payment of principal on a scheduled basis) will there be a higher balance resulting after a payment. we've not been led to believe that this is one of those sorts of loans.

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