Unexpected changes in your financial situation may affect your ability to repay your mortgage. This may involve a default in your mortgage and, if payment is not made in a specified period of time (with any additional late fees and penalties), the bank may choose to take enforcement measures against your property. If you are facing such a situation and would like to contact a real estate lawyer specializing in mortgage defaults and enforcement, click here and select “Residential Real Estate” as the area of law in which you need help.
Mortgage agreements between different lenders will differ so it is important for you and your lawyer to review your mortgage agreement and its terms. The following is a general overview of some mortgage terms and procedures related to mortgages.
Grace Period. The grace period is the period of time that a lender gives to its borrower to pay the missed mortgage payment without penalty or late fees. This grace period may range from one week to one month.
Once the grace period passes and the lender provides you with the necessary notice, the bank may then take steps to declare your mortgage in default. This may include reporting the default to credit agencies, which will drastically affect your credit score, and engaging a collection agency to collect on amounts owing.
Foreclosure. One option available to the lender would be to foreclose on your property and sell it to repay the entire amount of the outstanding mortgage. If foreclosure does not result in a full repayment of the amount owing under the mortgage, you may still be liable for the amount that remains unpaid.
If you think that defaulting on your mortgage is a possibility, you may want to consult with a lawyer to determine what your options are.
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If you are looking for a mortgage default and enforcement lawyer or law firm, click here and select “Residential Real Estate” to find the lawyer that best suits your needs.