Updated: Jul 10, 2018
Everyone should ask three main questions, everyone should ask prior signing up with mortgage...What do you own in the agreement either House or Debt? Do you know what are you signing on the paper? Did you read your mortgage or loan agreement?
The agreement is one of the most ignored and less valued document while it comes decide on signing up debt. When I bought my first home, I did not know until few years that what did I sign up on paper. If you have a mortgage and missed mortgage payment, then you have the grace period that lasts until the 15th. Once you passed off that month, may assess fees and your payment considered delinquent. You will probably receive a notice or phone call as early as the 16th day of the month from Credit Bureau. However, many lenders will not report you to the credit bureaus until 30th. After it reaches 30 days late, you will probably receive a breach letter about your mortgage informing you that foreclosure could be coming if you don’t pay in between 45-60 days late. Between 60-90 days, your credit score will likely take hit as well as your lender usually begins foreclosure proceedings.
The typical process is what we described above but may have some minor differences depending on province or country. Once foreclosure starts, you may not know but whatever the payments you did, goes to the bank or financial institution. I have heard that a guy whose property was foreclosing and was not left anything in the house except his Wheelchair. So what does it mean to you, You own house but not, if you do not comply with conditions or agreement.