Acceleration Warnings!
Posted by: info | September 29, 2007
Any homeowner who has been more than two months behind on their mortgage has most likely had an acceleration warning letter from their lender. An acceleration warning is a letter from a financial institution or lender threatening to speed up the foreclosure process if the past due amount on the loan is not paid within 30 days. What can be done with an acceleration warning?
Even with the threat of foreclosure the acceleration brings a homeowner still has options and plenty of hope. When a homeowner is faced with difficult situations as these, it is very important to remain positive and calm. A consumer with this letter should immediately call their mortgage company. Prompt response can be the difference from foreclosure to getting caught up on payments.
The lender will be happy to hear from their customers and probably very eager to work out a payment plan. Call the lender and ask what arrangements if any can be worked out. Explain how the situation has happened and what will be done to prevent it in the future. Many times a consumer can avoid paying all the money required in 30 days by the acceleration warning. Most of these consumers don’t have any hope or chance of paying the entire amount. Once an acceleration warning is issued, the customer is at least two months behind and will be asked to pay three months of payments. These consumers are having a hard time making one payment, so asking for three payments at once would almost be impossible. The lenders are very aware of these statistics and look forward to the customer calling and collecting their money.
How long does a homeowner have before foreclosure after an acceleration warning? This can vary from state to state and by lenders. However, a lot of lenders will have the foreclosure set to happen in about six weeks from the end of the acceleration warning. Then a homeowner will be served papers and required to leave within 10 days. Once the acceleration warning has passed without response, it becomes very difficult to set up payment arrangements or come up with the money. At this point the lender will require the customer to come up with all the money in most cases.
Posted in: Mortgages, General |
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