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Are they compliant

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I got behind on my mortgage with Wells Fargo I was 120 days late 3 years ago, but I have been making my monthly payments.  So every month I am 120 late.  I finally saved enough this year to make an extra payment so now I am 90 days late every month.  Recently Wells Fargo sold the mortgage to an investor and it is being serviced by Fay servicing .  They sent me a notice of default and an intent to foreclose when I'm only 72 days late.  In the letter it basically says I need to make 3 months payment in 30 days.  I called and they will still accept a single payment up until I am 90 days late.   It is my understanding that they can only send this letter after I am 90 days late and I would still have 30 days to pay.  I am trying to catch up.  I will be able to save an extra payment in a couple of months.  This new servicer seems so much more aggressive.  Are they in compliance.

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Read your note.


You are considered delinquent once you are 30 days past due on a single payment.


Many mortgage notes have acceleration clauses that allow them to make the entire remaining balance payable immediately when you default.


Sample I found on the Information Superhighway (but read your note as mentioned above, because it may contain other provisions in the event of default):  


If any monthly installment under this Note is not paid when due and remains unpaid after a date specified by a notice to Borrower, the entire principal amount outstanding and accrued interest thereon shall at once become due and payable at the option of the Note holder. The date specified shall not be less than thirty days from the date suchnotice is mailed. The Note holder may exercise this option to accelerate during any default by Borrower regardless of any prior forbearance. 


Foreclosure is a slow and expensive process, but servicing an account that is non-performing/perpetually delinquent is also very expensive.  


Unfortunately, it appears that you found the tipping point where Wells Fargo no longer wanted the losing asset on its books.  The new servicer probably specializes in non-performing loans, which is why you're seeing more aggressive action now.


Sorry you're going through this, and I hope it works out.

Edited by cv91915

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Upon what resource are you referring to that supports your claim that such a notice cannot be mailed until you were 90 days past due with the current servicer? 


Hopefully you have a credit card from which you can tap a $5K cash advance (obviously presuming that the monthly mortgage nut is about $1700).  They don't have an obligation to continue to carry a note where the purchaser is in a financial situation that suggests they lack the necessary resources to pay for the asset...and rolling lates of that nature place you in that category from a risk analysis standpoint. 


The new servicer wants to either see the note made current post-haste or they won't hesitate to get the asset into the hands of someone who CAN afford the property.  The inability to make a dent in a 120-day deficiency balance from 36 months ago is problematic on multiple levels, to say nothing of the additional interest you are costing yourself.  Even an extra $150-200 per month would have likely had you out of this hole before this current state of events came to pass...

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