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WHAT IF THE BORROWER IS LATE ON HIS PAYMENT OR DOESNT PAY AT ALL?

April 26, 2017borrower late pay payment

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WHAT IF THE BORROWER IS LATE ON HIS PAYMENT OR DOESNT PAY AT ALL?

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If a borrower makes a late payment there is an automatic late payment charge, usually 10%+/- of the monthly payment, which is then owed and payable to the investor. If the borrower does not pay at all, interest continues to accrue of course and all of the remedies at law set out in the note and mortgage are available, including acceleration of the total principal and interest, initiation of foreclosure proceedings, and appointment of receiver of the property for rents and income (non-residential property).