FI 413 Study Guide - Midterm Guide: Fixed-Rate Mortgage, Balloon Payment Mortgage, Adjustable-Rate Mortgage
Document Summary
Suppose day 1 is the day that the payment is due. From day 2 through day 36, there may be a 10-day grace period before a late payment fee is imposed, and 30 days before a late payment is reported to credit reporting agencies. Lender/servicer must make a good faith effort to establish live contact with homeowners to inform them about loss mitigation options. Day 45: lender/servicer must assign a single point of contact to the homeowner and provide written notification of delinquency and loss mitigation options. Day 121: if all attempts to resolve default are unsuccessful and no hardship application is received, the foreclosure process can begin. A notice of foreclosure is recorded at the local courthouse. By federal law, the foreclosure process cannot begin before day 121. At this point, the bank"s attorney will proceed to schedule a sale. The sale date is the actual day of foreclosure.
