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#2259994 - 09/21/21 03:16 PM Loss mitigation-late days
Kristi Offline
Joined: Feb 2005
Posts: 85
We have a customer who is constantly getting 117-119 days delinquent but always makes a payment to keeps from getting to 120 days. When he makes a payment our system automatically applies it to the earliest due date (ex. If he makes a payment today it'll apply it to his May '21 due date. My question is... can we start the 120 days from the 1st payment he was late or do we have to wait until our system actually hits the 120 days? I read on the CFPB's website "Borrowers have the most protections if a complete
application for mortgage assistance is submitted within
120 days of the first missed payment because the
servicer is not allowed to start a foreclosure process
during those 120 days."

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Lending Compliance
#2259998 - 09/21/21 03:29 PM Re: Loss mitigation-late days Kristi
rlcarey Offline
10K Club
Joined: Jul 2001
Posts: 77,216
Galveston, TX
It just sounds like you are stuck with a perpetual late loan, unless you want to make them a offer to bring the loan current in some manner..
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