Posted on: 25th Feb, 2007 12:58 pm
I was two months behind on my mortgage payment. I tried to make a one month payment the day before the third payment was due. Failure to pay three payment would result in a default of the loan. The company said they would not accept the one month payment and wanted three months of payments. The third payment was not even due until the following day. If they had accepted the one month payment my mortgage would not go into default for another month. Did they have the right to deny a one month payment?
Welcome Dlouise,
The company has the right to deny your payment. But they should not have extended the issue. Going into default is not a good thing after all as far as your credit report and score are concerned. So, you should try to convince them so that they accept the payments. I don't think they should be strict in this regard. It's just a matter of one payment and that too, you are paying it the day after the third payment was due.
Thanks,
Sara
The company has the right to deny your payment. But they should not have extended the issue. Going into default is not a good thing after all as far as your credit report and score are concerned. So, you should try to convince them so that they accept the payments. I don't think they should be strict in this regard. It's just a matter of one payment and that too, you are paying it the day after the third payment was due.
Thanks,
Sara
As was indicated, YES they can deny anything less than full payment of the default amount.
Technically, the loan is in default as soon as you are late with a payment. It doesn't have to be three months behind.
It's just that three months is when many lenders will file a Notice of Default or Lis Pendens to start foreclosure proceedings.
You may want to talk to the Loss Mitigation department of your lender to see if they would be willing to help you structure a repayment plan.
Also, the foreclosure laws are different in every state, and it would be worthwhile to learn a little more about what the process is in your state and what your rights might be.
Here are a couple of sites that might help…
"http://www.realtytrac.com/education/noframes/foreclosurePro.html"
"http://www.stopforeclosure.com/Foreclosure_Laws.htm"
"http://www.foreclosures.com/pages/state_laws.asp"
"http://www.realtytrac.com/foreclosure_laws_overview.asp"
"http://www.foreclosurelaw.org/"
[Link deactivated as per forum rules. Thanks.]
Technically, the loan is in default as soon as you are late with a payment. It doesn't have to be three months behind.
It's just that three months is when many lenders will file a Notice of Default or Lis Pendens to start foreclosure proceedings.
You may want to talk to the Loss Mitigation department of your lender to see if they would be willing to help you structure a repayment plan.
Also, the foreclosure laws are different in every state, and it would be worthwhile to learn a little more about what the process is in your state and what your rights might be.
Here are a couple of sites that might help…
"http://www.realtytrac.com/education/noframes/foreclosurePro.html"
"http://www.stopforeclosure.com/Foreclosure_Laws.htm"
"http://www.foreclosures.com/pages/state_laws.asp"
"http://www.realtytrac.com/foreclosure_laws_overview.asp"
"http://www.foreclosurelaw.org/"
[Link deactivated as per forum rules. Thanks.]
