Asked by: Florencio Boullonbusiness and finance bankruptcy
Can a loan servicer foreclose a mortgage?
Last Updated: 9th March, 2020
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Simply so, when can a bank foreclose on a mortgage?
Most lenders will not begin foreclosureproceedings until a borrower is 3-6 months behind on theirpayments. Although missing a single payment is technically adefault under the terms of most loan documents, lenders haveneither the time nor the desire to foreclose on borrowerswho have missed one payment.
Furthermore, are mortgage companies debt collectors? A mortgage company can use a debtcollector to call you, but as a debtor, you do have rights. TheFair Debt Collection Practices Act (FDCPA) is a federal lawthat governs the behavior of debt collectors.
In this way, do you still owe money after a foreclosure?
If you lose your home to foreclosure,you still might owe money to your lender. Whenforeclosure sale proceeds aren't sufficient to repay thefull amount of a mortgage loan, the difference between the saleprice and the total debt is called a "deficiency."
What is mortgage loan servicer?
A mortgage servicer is a company to which someborrowers pay their mortgage loan payments and whichperforms other services in connection with mortgages andmortgage-backed securities. Many borrowers confuse theirmortgage servicer with their lender.