Missed payments are not a matter of overt concern until the second missed payment period has passed – which means the borrower is 60 days late in making payments. When a borrower misses two consecutive loan payments, the account is considered in early-stage delinquency.

Mortgage servicers are responsible for handling delinquent loans. Mortgage servicers also handle the day-to-day processing of mortgage loans which includes communicating with borrowers and investors, processing payments and handling escrow accounts. So, if a borrower does not rectify the delinquency, mortgage servicers are responsible for choosing whether to pursue a foreclosure sale or to implement a loss mitigation option. Continue reading...