Are you in default or about to default on your loan? There are many consequences like fees and damage to your credit score, and your loan is now considered non-performing. One of the fees you will come across are default-related fees. These fees typically come from default-related services, and are determined by default rates.
Default Rates Determine Fees
- Loan type
- Investor and insurer guidelines
- Property size, location, and condition
- State and local guidelines
Remember, the longer your Kansas City mortgage is in default, the more fees you will have to pay. If you find yourself in default, meet with your lender to discuss your repayment options.
Lenders will send someone to inspect your home to make sure that you’re actually living in it and it is being maintained. Inspectors will come to your home to take pictures and inspect the home for damages. If you are not living in your home and in default, your lender will secure the home. If the property is not maintained or abandoned, your lender will charge you for property preservation.
Remember, you have the right to live in your home during foreclosure until the time of sale. If your property is being treated as vacant, contact an attorney and inform your lender that you’re still living in the home.
If your property is not being maintained or you aren’t living in it, your lender will be responsible for maintaining the property to make sure that it is maintained and in good condition. Properties that are in default need to be in good condition because not only will it make the area safer, but be sellable if it comes down to a foreclosure auction.
Preservation of a property includes:
- Boarding up broken windows and doors
- Changing locks
- Securing outbuildings and pools
- Lawn maintenance
If you are unable to start making payments on your home loan again, your lender will begin the process of foreclosing on your home. With foreclosure comes a variety of fees like:
- Attorney fees
- Title search fees
- Mailing fees
- Deficiency judgments