Financial Dictionary -> Debt -> Collection

There are several types of collections; the first is the real estate collection that is done by the bank, or mortgage company. When not paid on time depending on the mortgage agreement they collect either the full amount of the loan or the owed payments including extra fees. In the event that this attempt fails the bank will then begin foreclosure proceedings if the payments are 1, 3, or 6 months past due depending on the original loan agreement that was signed at the onset of the mortgage loan.

There is also the effort to collect on back taxes on a real estate property. The county tax adjustor does this when the property tax has not been paid and the amount of time has past for payment without a penalty. If the real estate debt is not satisfied when the attempt to collect has been made then a process to place the property for tax sale can be started. This is also known as a property being placed for sheriff sale, because the property owner will be served with tax lien papers by a sheriff. The other type of collection is the real estate collection usually done by investor that has several or many properties.