Grace periods?

Question

Why does the mortgage company I work for let their customers know they have a grace period from the 1st to the 16th. Then they are going to make me start calling them on the 5th for the payment?

The customers when called feel that they are not late until the grace period ends.

Answer 1

There is probably a state law that says you cannot be penalized for being 15 days late, but that does not mean your payment is on time. It is late it if it is due on the 1st of the month and not received by them on that date. And payment means payment; a personal check is not payment

If you are 3 months late, they will start foreclosure, and they don't have to wait 15 days for the 3d month because your most recent payment due is well over 15 days late.

They can also report it to a credit reporting bureau as a late payment.

Too many people confuse a grace period with a do-not-have-to-pay-by date. Taint so.

Answer 2

Good answer from Thylawyer. If the payment is due on the first it’s late on the second.

Handle the call as an additional service from your firm. Your company really doesn’t like to collect late payment fees from your customers and you are just calling them to let them know that you haven’t received their payment yet. If they mailed it before the due date, then they might want to follow up and see what happened to it before it costs them that late payment fee ;->

Answer 3

A grace period is simply: "Time allowed a debtor in which legal action will not be undertaken by the creditor when payment is late." The debtor is still late and calling them still makes sense. Maybe they forgot to mail in the payment. Maybe they sent it but it got lost.

Answer 4

I would talk to the company you work for and pose that exact same question to them and see what they say

Answer 5

because big businesses suck