[PowderMonkey]

"They cant just call a homeowner and demand full payment on a mortgage on the spot."

I don't know about your mortgage agreement, but mine have always included a provision specifically stating the lender can call in the note, demanding payment in full at any time, for any violation of the terms. The only thing that prevents it is the understanding it's bad for business, so they generally hold off on "going nuclear," but they can do it. You are correct. Banks make $$$ by loaning it out. They aren't in the real estate business, but they can and will drop the hammer when the time comes. My last zip cope was filled with over 600 homes on the auction block within a 2-mile radius of my front door. Hundreds more were in the banks' shadow inventory awaiting processing.

[sickoflibs]

RE :”I don't know about your mortgage agreement, but mine have always included a provision specifically stating the lender can call in the note, demanding payment in full at any time, for any violation of the terms. The only thing that prevents it is the understanding it's bad for business, so they generally hold off on “going nuclear,” but they can do it. You are correct. Banks make $$$ by loaning it out.”

I was once short on a mortgage payment because the escrow went up and I forgot to adjust. It was ~ $50 short.

The company tried to hit me with a late fee on the entire mortgage for that more than the amount I was short, but I gave them grief and they backed off.

A year later they went under and sold my loan to another mortgage comp.

If they called in the loan now I could just pay it.