What is first payment default?

If you miss out on a payment, the lender has the right to call the loan due. But generally they do not do so until there are 3 defaults.

You should check your mortgage contract; the contract must have stated how many missed payments will be allowed before the Notice of default would be filed and sent to you.

Hi Jeff,

The first payment default refers to the very first payment on the loan which you have missed out. A lender may not foreclosure right after a single payment default but then this varies from one lender to another. For more information on this issue, go through our previous discussion on Can Mortgage be foreclosed on one missed payment .

Thanks,

Caron.

purchased used truck this weekend. had crv for downpayment plus 2k from savings. wife's name on crv so she has to sign release. found out sat. state franchise tax froze my monies (2k dn) and wife might not sign for trade in. dealer let me take veh. home. what options to get out if I don't have down payment. a person suggested first payment default. help

robert, i gather you want to keep this vehicle. a first payment default will send the repo man out to your house immediately. so, "a person" is apparently lacking any knowledge of what to do. please don't follow that advice. even if you wanted to give the truck back, you'd be better off calling up and saying that rather than making them come out and grab the vehicle from you.

is "a person" a friend of yours? more accurately, was "a person" a friend of yours until now?

ok i bought a used vehicle and had full coverage insurance.......i was in a accident the first week and they totalled out the car but the check is for 2500 dollars less than i owe.....is there a way to make a first payment default rule work to my advantage........

Hi garnet,

Your query has been replied to in the given page:
http://www.mortgagefit.com/problems/firstpayment-default.html

Take a look at it. Hope it helps you.

Thanks