What happens if I am late on a monthly payment?

Each month, your monthly Mortgage Financing payment is automatically withdrawn from your bank account on file. If you receive an email from IRESE that your payment failed, it means that your account has insufficient funds, or that the bank account on file at IRESE is out of date or incorrect. In either case, you will pay a failed payment fee and can fix the problem with no further penalty by making a manual payment and ensuring that your bank account has sufficient funds.

Go to "Home > My IRESE > Products", select your Mortgage Financing and click the "Make Payment" link. Take me there If your bank account information is out of date, be sure to add a new bank account first.

If you can't make a payment, IRESE will follow the delinquency schedule shown in full detail below. Please note that at all times interest continues to accrue on the principal balance of your Mortgage Financing, in addition to any failed payment or late payment fees assessed.

What's the best way to get current on a late Mortgage Financing payment?

Go to "Home > My IRESE > Products", select your Mortgage Financing and click the "Make Payment" link. Take me there

Learn more about making late payments.

What exactly happens if I'm late?

Below is the schedule that IRESE follows in the event of a Property Owner missing a payment. At any point in this process, if your outstanding payment is paid in full, your account will be returned to "Current" status.

One week before payment is due

• You will receive an email reminder from IRESE indicating the date and amount of your upcoming payment.

Day 0: First payment attempt

• On the day your payment is due, IRESE will attempt to withdraw payment from your bank account.

Day 1-5: First failed payment

• You will be charged a failed payment fee of $15. Failed payment fees are collected by IRESE.
• You will receive an email from IRESE indicating the amount due, fees accrued, and notifying you about upcoming payment attempts.

Day 8: Failed payment notification

• You will receive another email from IRESE indicating the amount due, fees accrued, and notifying you about upcoming payment attempts.

Day 10: Second payment attempt

• IRESE will attempt to withdraw payment from your bank account a second time.

Day 16: Second failed payment notification; late fee assessed

• You will be charged a late payment fee for being more than 15 days late on your monthly payment. L ate fees are the greater of $15 or 5% of the unpaid installment amount. Late fees are passed on to Investors; IRESE does not profit from late fees.
• You will receive an email from IRESE indicating the amount due, fees accrued, and notifying you about upcoming payment attempts.
• Your Broker will receive an email from IRESE notifying them about your delinquency and the effect of your delinquency on the Broker's reputation.

Day 22: Third payment attempt

• IRESE will attempt to withdraw payment from your bank account a third time.

Day 26: Third failed payment notification

• You will receive an email from IRESE indicating the amount due, fees accrued, and notifying you that your Mortgage Financing will be turned over to an outside agency for foreclosure.
• Your Broker will receive a second email from IRESE notifying them about your delinquency and the effect of your delinquency on the Broker's reputation.

Month 1: Late fee assessed; you are in default, Mortgage Financing sent to foreclosure

• You will be charged a late payment fee at 46 days past due for being late on the next month of monthly payments. Late fees are the greater of $15 or 5% of the unpaid installment amount. Late fees are passed on to Investors; IRESE does not profit from late fees.
• Your Mortgage Financing will be sent to the foreclosure agency. The foreclosure agency will attempt to collect the amount due and any fees accrued.
• Your delinquency will be reported to Experian and TransUnion, two national credit reporting agencies, and will appear in your credit history. Your credit score will be negatively impacted.

Month 2: Late fee assessed; foreclosure continue

• You will be charged a late payment fee at 76 days past due for being late on the next month of monthly payments. Late fees are the greater of $15 or 5% of the unpaid installment amount. Late fees are passed on to Investors; IRESE does not profit from late fees.
• The foreclosure agency will continue attempting to collect the amount due and any fees accrued, files Public Notice of Default.
• Your delinquency will be reported to Experian and TransUnion, two national credit reporting agencies, and will appear in your credit history. Your credit score will be negatively impacted.

Month 3: Late fee assessed; foreclosure continue

• You will be charged a late payment fee at 106 days past due for being late on the next month of monthly payments. Late fees are the greater of $15 or 5% of the unpaid installment amount. Late fees are passed on to Investors; IRESE does not profit from late fees.
• The collection agency assigned to your Mortgage Financing will continue attempting to collect the amount due and any fees accrued and files Public Notice of Sale.
• Your delinquency will be reported to Experian and TransUnion, two national credit reporting agencies, and will appear in your credit history. Your credit score will be negatively impacted.

Month 4: Property sold at the Public Auction; credit history and credit score impacted

• After four months of delinquency for any single payment, your property will be sold at The Public Auction and any proceeds will be distributed to Investors.
• Your delinquency will be reported to Experian and TransUnion, two national credit reporting agencies, and will appear in your credit history. Your credit score will be negatively impacted.
• Property Owners who have defaulted at IRESE will not be allowed to finance again on the IRESE.

Foreclosure Timeline

Who receives late and failed payment fees?

Late fees are paid to Investors to cover their losses during the delinquent period. Late fees are divided up proportionally according to the number of shares that the Investor owns.

Failed payment fees are paid to IRESE to cover the fees our bank charges us for failed electronic payments.