Question: I am several months behind
on my mortgage. Can a bank
foreclose on me if I make one complete mortgage
payment a month and try to catch up little by little?
Also, what if I can pay the principle and interest but
not the taxes and insurance that are lumped into my loan
payment?
Response: Generally, after you
missed a full payment, the bank can send you Notice of
Intent to Accelerate the loan or 90-Day Demand letter
with the date by which the payment is due. The bank
cannot commence its
foreclosure action for at least 90 days following
such letter. Most banks will not send it right away, so
foreclosure will not typically begin for longer than
90 days. If you enter into an official repayment plan
with your bank, then they will not commence
foreclosure but if it’s just your plan to gradually
pay the servicer bank, the servicer may still refer you
to
foreclosure. I would definitely recommend contacting
your bank because there are numerous options that could
be explored that could help you avoid
foreclosure (loan
modification, repayment plan,
forbearance plan, etc.). As for the 2nd question,
your taxes and insurance are part of your monthly
mortgage payment so by not paying your escrow, your
payment is less than full and may be placed in a
suspense account; then, once there is enough money in
suspense, then it is applied towards the missed payment
but late fees and penalties will continue to accrue on
the loan. If there is just an escrow shortage (as
opposed to intentionally not paying escrow), then the
servicer can divide the payment over a number of months,
usually 12 to become current.
In the legal blog, Attorney Svetlana Kaplun addresses typical questions our firm has received from our clients, or come across from homeowners related to foreclosure, foreclosure defense, loan modification and bankruptcy topics.
The information contained in the legal blog of Attorney Svetlana Kaplun is for informational purposes only, and should not be construed as a legal advice on any subject matter. Please read our full disclaimer or contact the Law Office of Svetlana Kaplun, P.C. by telephone at 718-444-1115 for more information.
Copyright © 2015 Law Office of Svetlana Kaplun, P.C.
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