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I have been having problems making my mortgage payments. I have been asking for the past 2 years of some sort of financial relief of lowering my payments. All I have been getting is the option of forking out more money.
May 2008, I asked about a Loan Mod. Was told to fax out paperwork. Which included a profit and loss statement.
After a month of not getting a hold of anyone. I finally got threw to INDIA. The guy told me that I didn't do my Profit loss statement correctly and I should have my husband do it. Since don't know what I am doing????
I explained that I did do it correctly and that I have taking courses in college do it. He bluntly told me again that I don't know what I am doing and have my husband call back.
I contacted Rep and left a message saying I don't appreciated be belittle because I am a women.
She called back and apologized, Saying that was uncalled for, and then wanted $500.00 to proceed with the loan Mod. I told her that I don't have that kind of money and I don't know anybody that would loan me it. She also stated that she wanted a fax of my bank statement???
I don't feel right on faxing that out I explained.
Now 5 months later I owe over $300.00 in late fees, found out that they hold a late fee in a miss. account. I have made 3 payments with a late charge. I called and told that their could be an error and she doesn't see it . I ask her how could she hold a late charge and not apply it? She couldn't answer me. Then after the end of our conversation, she threaten to start the forclosure
if they don't receive the late charges of 300.00.

Can they foreclosure on late payments?

If you're in default of the agreement you signed at closing, i.e. your mortgage note, yes, the lender can initiate foreclosure proceedings, regardless of the late charges you've already paid. When contacting any creditor, particularly a mortgage company, I'd strongly suggest all contact be made in writing. You're entitled to a payment history; request at least a 12 mo history, longer if that is available. That history is required by current federal credit laws to disclose every penny you've paid and how it's been applied, regardless of which "account" they choose to hold the actual funds in. That history should match every payment you've ever made; including the due date, date received and amts applied to principal balance, escrows and even itemizing the late charges. FYI: 9 out 10 large corporations "outsource" their customer service overseas, so it should come as no surprise that you're dealing with someone outside the continental United States. It's no secret; it's certainly not illegal, but again, that's what makes the need for written correspondence so imperative.

From what you've described above, it sounds as if they're considering an "in house" refinance, particularly when they've asked you to disclose your personal financial information. (i.e. "loan modification.") If you haven't made a formal application with them upfront, personally I don't believe I'd forward them any more documents without complete disclosure of just what type of agreement you'd be entering into with the lender. Those "loan modification" fees sound strangely familiar to application fees charged by any one of a number of reputable lenders..not much of a "break" from your current lender, in my opinion. You're probably better off contacting a US branch of your current lender and discussing the possibility of an in-house or streamlined refinance by meeting in person with a loan officer or other bank/mortgage company representative in an actual interview first. Understand that with the current financial crisis, you may initially encounter some resistance, but it certainly wouldn't hurt to try. (Again, my opinion.) Another FYI: for any reputable lender, a profit and loss statement is interesting and in some instances a required document, but most weight is typically placed on your past federal income tax returns (usually the past 2 yrs) for a self employed borrower. Your bottom line net positive income (or loss) is what any mortgage company is looking for. Your profit & loss statement probably showed such little net income that the lender was looking for more in your bank statements. Again, I think you were prudent in not forwarding your personal financial records without first meeting with a licensed representative of the banking institution and thoroughly discussing your intentions well in advance. Even then, I wouldn't recommend proceeding any further without legal advice, particulary given the current lending market.

Sorry to digress; hopefully I've at least answered your initial question. Good luck.