First Missed Payment: Lender will typically contact borrower by letter or phone.
Second Missed Payment: Lender attempts to contact a borrower to discuss missed payments.
Third Missed Payment: After the third payment is missed, lender sends out “Demand Letter” or “Notice to Accelerate” letter. Most banks will allow 30 days to bring a mortgage current or barrower’s attempt of some type of payment arrangement or reffer to foreclosure assistance resources.
Fourth Missed Payment: Borrower is nearing the end of time allowed in the “Demand” or “Notice to Accelerate” letter. If payment is not made or borrower did not work out an arrangement, case is referred to lender’s attorney. All attorney fees become part of a delinquency amount.
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