What’s your biggest fear when you fail to pay the mortgage loan? Surely most of the worried about his house confiscated by the authorities, both banks and related financial institutions. However, the actual default procedure is set in the credit agreement that has been agreed by both parties, including sanctions and losses from negligence to pay mortgage repayments. When it happens, the homeowners usually try their best to pay their mortgage as soon as possible, have a consultation with the bank representatives, or simply hire the trusted professionals to stop foreclosure.
It is true that foreclosures can happen when you cannot pay mortgage payments, but before that happens, there are efforts that will be made banks or financial institutions as a warning.
As for some early warning prior to the process of foreclosure is as follows:
If you have not paid the bill after the expiry of maturity, then you will first be deemed late to pay.
Penalties for late payments are usually fines that will apply to your bills.
Generally, this fine is quite large, even up to 0.5% per day calculated from the number of monthly repayments.
The Bank sends you a Warning Letter
The second step the bank usually does to remind you that you are late to pay is to send a letter of reprimand.
The letter of reprimand contains a statement to the debtor to immediately pay off the mortgage loan plus the applicable fine.
The first warning letter was sent after a monthly installment delay with a deadline of up to three weeks since the letter was issued.
If the letter of reprimand has not received a good reply from the debtor (aka pay off his obligations) after the deadline, then the bank will send a second warning letter by the same deadline.
If there is still no response from the debtor after the second warning letter is issued, then a third warning letter is sent.