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Default Status

Posted on: 26th Apr, 2007 10:58 am
i am in default status with my mortgage company. i live in il. two questions: 1. can my second mortgage company come after me? 2. do you know of anyone that will consolidate my loans with my status?

sorry if this is a double post. i\'m new at this.

thanks.
Welcome Frankinneed.

If you stop paying the second, the lender may not foreclose because there's a first mortgage on the property. So, if the second lender forecloses, he will have to pay off the first mortgage from the same proceeds and then any remaining proceeds would go towards the payment of the second.

Now, if the second lender doesn't foreclose, he may charge off the debt if at all he thinks you aren't able to pay off the loan. However, the balance is quite high, so there's doubt as to if at all he'd issue a charge off.

Since you are raising your grand daughter, you'll need money to pay off your liabilities. So, if you're 62 and above, you can go for a reverse mortgage. The best thing about it is you don't need making monthly payments. What do you say?

Thanks.
Posted on: 20th Nov, 2008 12:32 am
I just received a letter stating my loan is now in default status. and breach of my contractual obligation, and that a suitable payment plan is not in place. I lag behind this year. I am current but will pay by the 15th grace period for July. Can I still be foreclosed on?
Posted on: 11th Jul, 2009 04:59 pm
Hi aw,

If you pay off the dues within the grace period then the lender will not foreclose the property. The lender will foreclose only if you are more than two months late in your mortgage payments.

Thanks
Posted on: 12th Jul, 2009 08:32 pm
aw, what you may have received is probably a standard type of document. technically, if a borrower does not pay a payment on the due date, then that borrower is in default. grace periods are simply that - grace periods. payments are due and payable on the due date and not afterwards - it's common for there to be grace periods, but they're not absolute.

if you are paying your july 1 payment by july 15, you need not worry about the wording on that notice; just understand that the lender wants its money as soon as possible.
Posted on: 13th Jul, 2009 08:42 am
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