Most mortgages carry what is called an Acceleration clause, which is a section of the mortgage contract that may specify the due date of the payments, and also include the steps the lender will take in order to penalize the borrower for late payments, or if the borrower fails to pay at all. The Lender may also apply a fixed amount if the payment is not paid within a specified time after the due date, and the lender can call the entire balance of the loan due and payable at once when the borrower misses a payment.

With most of these mortgages, a late mortgage payment does not really go against a borrowers credit until it is 30 days past due.

Normally lenders will try to collect the missed payment(s) first, but the lender will probably not call the entire balance due and start the foreclosure process until a borrower has missed several payments. If the mortgage does not have this Acceleration clause, the lender could not be foreclose.

So, it will probably make sence to look over this section of the mortgage contract when you are purchasing your next home to make sure that you understand the process that your lender will take to enforce this clause.

 If any of you out there is savvy on this topic, or is a mortgage professional, please add your comments because, I think we owe it to ouselves to educate the consumers. Maybe this can be our way of helping to reduce foreclosure the rate. 

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For more information about Greenville SC Real Estate, or to browse over 12,000 Greenville SC homes for sale, visit Victor Amadi's real estate website at: www.TheProducerTeam.com or call 864-525-0201.

Victor Amadi is a Greenville SC Realtor, and this information although may pertain to your area, however, it is based on South Carolina real estate. There may be part of this information that was gathered from different sources, and is an effort to educate consumers on Greenville South Carolina real estate. Information and opinions shared on this blog was deemed reliable at the time of this post, but may change in the future without notice.