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marketingjoe · Joined: 07 Nov 2009 Posts: 6 2.60 Dollars($)

What is the general time table that banks consider early defaults on FHA loans?

Is it true if you go into an early payment default the banks will more aggressively come after you like show up at your house to demand payments or go after your other assets?

Im facing possible foreclosure and Im a bit worried

Thanks

jveenstra · Posted: Mon Nov 16, 2009 9:22 am Post subject: Early Payment Defaults

Early payment defaults are normally missing the very first payment to missing payments in the first six months of a mortgage.

That is usually a Red Flag to the lender that the loan was not originated properly and the lender goes after the originator/mortgage broker to get the money back that they paid to the mortgage broker and sometimes attempts to get the mortgage broker to buy the loan back.
Those are penalties to the mortgage originator, not you.

The remedies for a lender to foreclose are pretty much the same no matter when i the life of the loan the foreclosure may occur.

marketingjoe · Joined: 07 Nov 2009 Posts: 6 2.60 Dollars($)

Does that time frame also hold true with FHA loans? I read on one site that said the FHA/HUD considers a missed payment in under 24 months an early default. THat sounds a bit extreme.

Also is it considered an early default if it is a refinanced mortgage?

Thank You for your time.

jveenstra · Posted: Mon Nov 16, 2009 11:36 am Post subject: Early Default

It applies to purchases or refinances.

No matter the time frame, it affects the relationship between the lender and the orginator.

As it pertains to the borrower, a foreclosure is a foreclosure. That has nothing to do with when the foreclosure occurs, sooner or later.

gmakerley · Posted: Mon Nov 16, 2009 9:29 pm Post subject:

the definition of early is pretty clear, i think; whether speaking of mortgage loan defaults, premature babies; waking up at 4 am...don't we all get that concept?

an early default, ergo, would be a default which takes place early in the repayment period. if you are late more than 30 days in the beginning stages of your mortgage indebtedness the lender's going to get very nervous about you being an "early payment default."

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Early Payment Defaults