A homeowner receives a notice of acceleration after missing a significant number of mortgage loan payments. This is often the result of a particular hardship or financial setback- from illness, divorce, or an event of the like. And in the instance that an individual receives such a notice, they face a challenging road to recovery. That’s why we at the JP Solution are here to assist you in the case that you’ve received a notice of acceleration and do not know where to go or what action to take next. You are not in this alone, and you will recover from this compounding hardship.
What is a Notice of Acceleration?
A Notice of Acceleration, also known as a Notice of Intent, Demand Letter, Default Letter, Notice of Default, or Notice of Default and Acceleration, is a foreboding and unwelcome greeting. It is sent to a homeowner, signifying that they have breached their contract by missing several of their mortgage payments. And this letter demands that they either pay-in-full what they owe or face foreclosure. This threatening letter warns the homeowner of their most dreaded consequence. However, it also provides an opportunity to cure the default to avoid acceleration and foreclosure. In order to do so, they are required to reinstate their loan payment for their missed payments in addition to incurred fees.
A lender is required to provide this information to a homeowner, as specified in paragraph 22 of most mortgages. They must determine the exact amount of money that is due and when the homeowner must provide it. If a lender fails to provide these details to the borrower, the foreclosure lawsuit may be dismissed.
Reinstatement:
For most people, reinstatement is not an option. In the case that a homeowner falls behind on their mortgage payments, it is likely due to some sort of setback in their lives. Their hardship may lead to financial instability with no foreseeable opportunity to recover. So, reinstatement, which tends to amount to tens of thousands of dollars, is an unrealistic option for most people. And, after acceleration has proceeded, an individual’s entire loan often builds to hundreds of thousands of dollars.
Loan Modification:
Typically, the only hope for a homeowner in this situation is loan modification. This will reinstate their loan with new terms, allowing them to resume making monthly payments. A loan modification can accomplish this in a few ways. It can reduce their interest rate, extend their loan, or reduce the owed principle and subsequently, their interest rate. Unfortunately, acquiring a loan modification is extremely difficult. Though a homeowner is required to provide the bank with a slew of documents and endure an extensive hassle, their loan modification is often denied.
If you’ve received a Notice of Acceleration, your options may be limited. But there is still hope for you! No matter your stage of foreclosure, we at The JP Solution want to offer our expert assistance. Do not hesitate to reach out to us at The JP Solution for foreclosure relief and the prospect of a bright future!