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What should I expect

Posted on: 14th Dec, 2006 11:45 am
I'm only in my second month with a new mortgage co. I was late on my first payment, and now because I was out of work for a few days I will be late this month. The payment was due on the first, before the tenth at the latest. It may be the first week of January before I get the money to pay the payment. Can they take my house because of that?
Hi Jeff,

Welcome back.

"Can they take my house because of that?"

This will actually depend upon the lender. If he has to take away your home, he should be going for a foreclosure, which lenders generally try to avoid because of the costs involved.

Your lender can call you up and ask for the reason behind your successive late payments. But before he asks you, I think it is better if you let him know why you are late in making the payments. This may let him give you a chance to be regular from next time. Or else, he may wish to have a discussion on whether you will be able to carry on with current payment plan.

The lender may ask you to accept an alternative payment plan. And, if you think that you can carry on with current plan, inform him about it. In short, just let him know about your current situation.

Posted on: 14th Dec, 2006 07:39 pm
Settle down, now -- let's keep some perspective! Your mortgage is due on the 1st of every month, and you have a grace period until the 10th. After that, you simply have a 'late-fee' when you pay between the 11th and the 30/31st. AFTER the end of the month, you are now late. Yes, this doesn't look good to your creditors or the credit bureaus, but no one is coming for your house. Not until you are 120+ days late on a payment (more than likely) will you recieve notice to this effect -- and, you would have contacted the lender well in front of this to describe your circumstance and ask their advice on how to get current. Take a deep breath and relax, please.
Posted on: 15th Dec, 2006 09:48 am
Thanks Charlesarmbuster, I did call the mortgage company and we worked out arrangements. It easy to get uptight in these situations, its been one bad break after another for my wife and I this month.
Posted on: 17th Dec, 2006 11:13 am
Depending on your mortgage company and what is in the contract, usually you have a few months before they start foreclosure. The bank does not want your house. However, if you have a loan with a private lender they could start proceedings in the first month. Have to read the contract to know exactly.
Posted on: 17th Dec, 2006 07:09 pm
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