According to federal law, lenders are required to wait for a period of 120 days before starting the foreclosure process. During this waiting period, it’s advisable to communicate with your lender and explore possible alternatives, such as loan modification or refinancing.
In the event of a default by the Borrower, the Lender shall have the right to take legal action to recover the outstanding amount of the loan, as well as additional accrued interest, fees, and costs. Default can be caused by the failure to make payments in a timely manner, breach of any other terms outlined in the loan agreement, or any event that may jeopardize the value or security of the collateral.
In the event that the Borrower defaults, the Borrower agrees they will pay reasonable attorneys’ fees that may not exceed a sum equal to the maximum usury rate in the State of (State) of the outstanding balance owing on the Loan as outlined in this Real Estate Loan Agreement. Plus, any reasonable expenses made by the Lender as they exercise their rights and due remedies in court in the State of (State).
Governing Law and Jurisdiction
The terms and conditions of this Agreement will be regulated and interpreted based on the laws of the State of (State) as required.