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Defaulting
on a home mortgage loan is a failure to meet the legal
obligations of your contract such as the failure to make the
monthly payment or the failure to pay property taxes when
due or maintain hazard insurance on the property.
If you are
in default for an extended amount of time you will
eventually go into foreclosure.
If you do
go into default it is important to stay in communication
with your lender. A deficiency in
communication could cause the foreclosure process to speed
up as well as incur even more costs.
If you
find yourself in the unhappy situation of receiving a notice
of default from your lender, do not procrastinate in dealing
with the problem, even if you cannot afford to bring your
payments current.
Lenders
are not in the business of home acquisition, it is a large
expense for the lender to put your home up for auction. Most
lenders will work with you to keep you out of foreclosure.
A mortgage
is not in default if you have missed your due date, but you
are still within the 30 day period before the next payment
is due.
Normally
after three missed payments a notice of default is issued
and mailed to you.
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