Can the bank foreclose on unpaid late fees? 17 Answers as of June 09, 2013

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?

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Paul Stuber, Attorney at Law
Paul Stuber, Attorney at Law | Paul Stuber
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.
Answer Applies to: Colorado
Replied: 9/6/2011
Heupel Law
Heupel Law | Kevin Heupel
Yes, any amount owed to a mortgage company is grounds for foreclosure. When you signed your promissory note, you agreed to pay on time or pay a late fee. Thus, it is a legitimate fee and permits the mortgage company to pursue foreclosure if not paid.
Answer Applies to: Colorado
Replied: 9/5/2011
The Barger Law Firm
The Barger Law Firm | Jason W. Barger
I am glad to hear you are able to make your monthly payments now. Regarding the late fees (which I assume are missed mortgage payments), yes, they can foreclose on you. Once you missed a mortgage payment, you breached the contract and the mortgager has the right to foreclose. It is important to make arrangements with them regarding these fees. If this is not possible, considering a Chapter 13 bankruptcy may be your only option to keep the house.
Answer Applies to: Texas
Replied: 9/1/2011
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
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.
Answer Applies to: California
Replied: 9/1/2011
G. Anthony Yuthas & Assoc.
G. Anthony Yuthas & Assoc. | Tony Yuthas
Depends on your loan agreement. Normally the fees that are due for late charges are added to, and become part of, the monthly payment due. If that payment is not made, the bank could technically foreclose. Doubtful that they would do this and it would be worth your time to attempt to work out a payment plan to satisfy this debt if that is your only problem.
Answer Applies to: Colorado
Replied: 9/1/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Yes..... they can. Try to get caught on them. This will keep the late fees from accruing against you.
    Answer Applies to: California
    Replied: 9/1/2011
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    It depends on how much you owe but I would say probably not.
    Answer Applies to: California
    Replied: 6/9/2013
    Theodore N. Stapleton, PC
    Theodore N. Stapleton, PC | Theodore N. Stapleton
    Yes but it is doubtful that they would unless the amount is substantial. I am happy to discuss these issues with you.
    Answer Applies to: Georgia
    Replied: 9/1/2011
    Dan Wilson Bankruptcy
    Dan Wilson Bankruptcy | Dan Wilson
    Yes.
    Answer Applies to: Colorado
    Replied: 6/9/2013
    Law Office of Michael Johnson
    Law Office of Michael Johnson | Michael Johnson
    I believe they can. If you have a large amount of these fees, you may want to discuss with an attorney as a chapter 13 my give you an extended time to catch up on those late charges.
    Answer Applies to: Florida
    Replied: 9/1/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    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.
    Answer Applies to: California
    Replied: 9/1/2011
    The Schinner Law Group
    The Schinner Law Group | Quinn J. Chevalier
    Yes, the bank can foreclose on unpaid late fees. Technically, if the assessment of the late fees was valid, and if they are past-due, then youre not current on your payments. But lets be practical: the bank probably doesnt want to foreclose because of $800 in past-due late fees when they know youre making the regular $2,000 payment every month. Theyre more likely to foreclose when its been several months since they receive any money from you at all. If I understand your problem correctly, they will probably give you every opportunity to work it out before they start the foreclosure process. (I use the term probably because banks are not well known for their ability to be reasonable or logical.)
    Answer Applies to: California
    Replied: 9/1/2011
    Judith A. Runyon, Esq. Attorney at Law
    Judith A. Runyon, Esq. Attorney at Law | Judith A. Runyon
    If they want to, yes.
    Answer Applies to: California
    Replied: 6/9/2013
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    Yes. If you have late fees you are NOT current.
    Answer Applies to: Georgia
    Replied: 6/9/2013
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    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.
    Answer Applies to: Virginia
    Replied: 9/1/2011
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    Yes.
    Answer Applies to: Michigan
    Replied: 6/9/2013
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    They can foreclose on any monetary default if they believe it is cost effective to do so.
    Answer Applies to: California
    Replied: 8/31/2011
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