If the borrower has moved and allowed the collateral to fall into disrepair, may we foreclose even though the loan is not delinquent? If so must how many days must we give the borrower before we foreclose?

I believe this would be a state law issue. My question would be, if you did foreclosure this property would cost the bank money by having to bring it up to basically proper conditions.

If the loan was current, how did the bank find out the property was in disrepair.

Loan officer drove by the house, and noticed it was abandoned. If we foreclose, yes it will cost the bank money to repair, if we do nothing and the house continues to deteriorate, then if the borrower quits paying then the house will cost even more to repair.

If you are concerned with the 120 day foreclosure rules found in 1024.41(f), refer to 1024.30(c)(2):

"The procedures set forth in §§ 1024.39 through 41 of this subpart only apply to a mortgage loan that is secured by a property that is a borrower's principal residence. "

If they have moved elsewhere, it is no longer their principal residence.

So otherwise, you have to refer to your loan contract for default terms and State law.

Than You Mr. Carey... you answered my question.
i