Reply To: New Foreclosure Process

Mary Frances

An Additional question regarding foreclosure and the 120 day rule…. Our bank attorney is asking this question “Can a bank refuse a monthly payment on a loan more than one month past due to prevent a debtor from avoiding going 120 days past due but at the same time never getting the loan current and therefore being on the past due list until the loan matures?” In his research he has found many consumer and bankruptcy websites already advising debtors not to worry about late payments so long as they don’t go 120 days past due. His fear is this could turn into a major problem and past dues could skyrocket.