It didnt affect the loan because of the divorce decree, but it completely wrecked the borrower's credit score - dropped it 130 points from high 700s to mid 600s- because the mortgage still reports on his credit report and was showing as a mortgage late. 

I bought a 3 acre plot in Sonoma county CA. late 90s unbuildable everyone told me it was not worth buying since it would not perk and you could not build on it and Utls are a long way away. etc etc.. well there was a new overchange put in about 3/4 of a mile away connecting my access road to the freeway . 

Coming to this thread late. 

Does the bank let you get 2.5 months late on your mortgage payments?

LP's and tenants often pay a high price, as well as GP's who don't know people's true character until it is too late.

Sorry for late follow up.Total repair was under $3k so I just ate it. 

What is your process on late rent?

Basically, refund any and all down payments, interetest charges, processing fees, late fees, etc.2) I beleive Dodd-Frank only applies to owner-occupied properties. - Hence why all the DSR loans we've seen have a required document the borrower signs that states the lender will start foreclosure proceeedings if the borrower ever occupies the property.Please correct me if I'm wrong or clarify anything I missed.

Late Payment Penalty: A late payment fee of 5% of the overdue amount will apply if payments are more than 10 days late.3.

My guess solely looking at your numbers is that it's an older/distressed property which means you have to account for more costs in capex. 2nd thought being it's not in the best of neighborhood then you'd have to take into consideration lower quality tenants/ neighbors and maybe increase expected vacancy and late payments.