Collecting All the Interest Due on the Mortgage (Servicing‪)‬

The recoverable interest on a mortgage in default is at times likely to be more than, or different from, the face rate in the note. Because this will so often be true, servicers do themselves a favor by being aware of what might be available. Servicers just might want to be as astute as their counsel on such points. While the interest rate a mortgage bears is obviously a function of what the mortgage documents provide, that language is of course then interpreted by case law and statute in the various states. At the very least, lenders and servicers should be readily familiar with the multiple stages of the foreclosure case where different interest rates may apply. If servicers both understand and have input on this subject, it can help ensure maximum recovery in any or every foreclosure action.