What Will Happen If You Miss a Mortgage Payment

Several things may occur if you fall behind on one mortgage payment. None of them are severe, but being just one payment behind can affect your credit score. It really depends on your mortgage company as to what will happen if you miss a mortgage payment. These tough economic times are causing lenders to be more willing to work with customers. More options are available when you contact your lender right away if you know you are going to be late. behind on mortgage, It is in the best interest of both parties for you to contact the company immediately and work out something together.

If you miss one payment, the next one that you make will be considered a late payment. You can't just skip a payment. You will be considered behind until you completely make up all payments. A missed March payment that you make in April will still be considered a March payment, and April's will still be due. If possible, try to get caught up a little bit at a time. Try making 1¼ or 1 ½ monthly payments until you are caught up. What will happen if you miss a mortgage payment may also result in late charges, interest, or other penalties.

You will be contacted by letter, phone, or both after your first missed payment. If you are 30 days or more delinquent, you will probably begin to receive daily phone calls from the mortgage company. If you fall two payments behind, these calls will increase to several times a day. They will want to know when you can bring your account up to date. If you miss three payments, the mortgage company may prepare to foreclose on your home. What will happen if you miss a mortgage payment varies by state, but anywhere between 90 to 120 days gives the lender a legal right to proceed with the foreclosure process.

Your credit rating, mortgage repayment history, and financial situation will play a key role in determining whether or not you qualify for the lowest rates possible. If you have a stable employment history, low debt to income ratio, and decent credit history, you may be able to get the absolute lowest interest rates available. However, things like late or missing payments and a shaky job history may hurt your chances of getting the best mortgage rates possible. This does not mean that refinancing a mortgage is not a good decision it just means that getting that qualifying for the absolute lowest interest rates will be impossible.

What will happen if you miss a mortgage payment is a snowball effect if it continues from month to month. Try to refinance if you are going to be more than 60 days late, as it will be nearly impossible to get caught up. If it looks like your financial situation is not going to improve, you may want to consider selling as a possibility. A loan modification may also help you to reduce monthly payments. Foreclosure makes it very hard to get future credit. A foreclosure can stay on your credit report for 10 years. If you make a genuine effort to communicate with your mortgage company, they will most likely work with you.