QUESTION
Can the bank foreclose on unpaid late fees?
Asked on Aug 30th, 2011 on Bankruptcy - Virginia
More details to this question:
My mortgage is current but I have previous late fee charges. The bank is now requesting the late fees. Can they foreclose on unpaid late fees alone?
9 ANSWERS
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Yes.
Answered on Jun 09th, 2013 at 7:41 PM
Glen Edward Ashman
Yes. If you have late fees you are NOT current.
Answered on Jun 09th, 2013 at 7:39 PM
judith runyon
If they want to, yes.
Answered on Jun 09th, 2013 at 7:38 PM
Daniel James Wilson
Yes.
Answered on Jun 09th, 2013 at 7:37 PM
2 Awards
If you still have unpaid late fees then your mortgage is not really current. The contract with the bank most likely gives them the ability to foreclose on unpaid late fees but in reality it is very unlikely. You should work it out with them before they add even more fees.
Answered on Sep 06th, 2011 at 1:57 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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A lender can foreclose if the loan is in default. This could mean owing late fees which is a default. However, it is highly unlikely that a lender would file a foreclosure when payments other than late fees are current. The best think to do is to contact the lender and make an arrangement to catch up payments.
Answered on Sep 01st, 2011 at 4:17 PM
Debtor's Rights Attorney serving Atlanta, GA
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Theodore N. Stapleton, P.C.
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Yes but it is doubtful that they would unless the amount is substantial. I am happy to discuss these issues with you.
Answered on Sep 01st, 2011 at 10:44 AM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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Yes the bank can foreclose on late fees but it is unlikely to happen for a long time because future payments are applied to previous balance including late charges. Therefore, it will take a long time until you owe enough in payment arrears before the notice of default is issued.
Answered on Sep 01st, 2011 at 9:32 AM
Bankruptcy Attorney serving Herndon, VA
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Maureen O'Malley
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I don't know why they'd want to. Depends on the value of your house and how much you owe. And on who the lender is.
Answered on Sep 01st, 2011 at 5:07 AM