What happens if the borrower stops making payments?
When payments are 60 days past due, the loan goes from Capital Alliance’s subservicer to our default management unit and foreclosure proceedings begin. All efforts are made for the loan not to go into foreclosure—we will assist the homeowner to get back on track, while at the same time protecting the interests of our investors. Typically, the homeowner refinances or sells the property (paying off the investor loan) or brings all past due payments current before the property sells at a foreclosure auction. The borrower pays all default management fees.
