What happens if I don't pay my mortgage late charges?

What happens if I don't pay my mortgage late charges? When can a bank or mortgage company charge a late fee? Watch as Attorney Tom Olsen answers these questions and more!

Shawn: We have a mortgage through a small bank and we have made late mortgage payments.  My mortgage is due on the first and late on the 15th.  The bank is threatening a mortgage foreclosure. Can my bank file a mortgage foreclosure strictly for the late charges?

Attorney Tom Olsen: No, Shawn. The answer lies within your mortgage deed, within the fine prints Shawn. I can tell you that the typical mortgage deed says this, that there is a late charge of 5% for any payment that’s more than 15 days late. If you’re more than 30 days late, they can call the entire mortgage loan due and do a mortgage foreclosure. Shawn, a typical late charge kicks in at 15 days. Maybe your mortgage deed says something different. But Shawn, you are playing in a very dangerous territory here and it is only going to get worse and worse for you. Shawn, keeping your home is very important for you, I know.

Shawn: Yes it is.

Attorney Tom Olsen: You need to set some priorities here Shawn and that is, you need to get your mortgage payment and these late charges paid up and keep them current.