Buying a home is a goal for most people. They work hard during early adulthood to ensure they have money to secure a mortgage in the future. 

Things may go well at the beginning. You are paying all your dues on time and living a comfortable life.  

But as time passes, unforeseen circumstances can impact your payments. And that’s it! You missed your mortgage payment.  

What happens if you miss a payment? If you want to know more about it, read on…. 

What Happens If You Miss A Mortgage Payment? 

Are we missing a mortgage payment? No! Of course, it is not ideal, but I am not saying that it cannot happen. After all, we are all human, and it is almost impossible to abide by all the financial rules and plans.  

Many mortgage contracts can include a specific window before the payment is considered late. Once you lose a mortgage, do you know what happens next? Well, the lender will send you late notice. This notice will also include the charges for being late.  

Moreover, your lender may lodge a report about the missing payment to the credit bureaus, such as,  

  • Experian™ 
  • Equifax®  
  • TransUnion® 

This report may affect your overall credit score. So, if you feel like you are about to miss a mortgage payment, don’t panic! Instead, you can talk to your lender. They can handle the situation professionally and help you with a new payment plan.  

The Total Count Of Mortgage Payments That Can Trigger A Foreclosure:

Suppose you have already missed one or two mortgages. Now, when will you get the default or foreclosure notice? Well, this depends on your lender. So, you must talk with your lender first.  

In some instances, working with the lender has helped rectify the payment before receiving the final notice.  

You might wonder how many mortgage payments will lead to a foreclosure, and you also need to talk with the lenders. Because, in most cases, the count can vary for different lenders.     

You can always find different mortgage assistance that can help you to reduce the burden of mortgages. However, this totally depends on the circumstances.  

Missing Mortgage Payments: What Really Happens? 

When you miss a mortgage payment for the first time, it is okay to panic. But don’t worry; you won’t just have to lose your house overnight right after missing your mortgage payment. 

Different approaches are taken before you get to the point of foreclosure on your home. Let’s look at them. 

Grace Period:

Most lenders will give you a certain grace period after the submission date for your mortgage payment. Depending on the lender, it’s typically around 10 -15 days. 

You will have a decent amount of time to submit your payment. But make sure you look at your mortgage paperwork to verify what your grace period will be. 

Late Fee:

After you’ve missed the payment and grace period date, there will be a late fee. It will appear on your following mortgage statement. 

When you’re making the next mortgage payment, ensure that you pay the late fee, too. Even if you make the payment, the account may not be current because you didn’t pay the late fee. 

Communication With The Collection Agency

If you haven’t paid your mortgage in more than a month, your lender will contact you regarding the matter. In this communication, they will tell you your account has been sent to the mitigation department. 

Through loan modification, you’ll be able to keep the house. However, if you ignore communications and further payments, it will lead to foreclosure. 

Foreclosure:

The last measure that will be taken against you for being behind on mortgage payments is foreclosure. Since no payments have been made to your lender, they can start foreclosure proceedings against you. 

The process typically takes a year and a half to finish. But if you get to this point, make sure to check your lender’s policies regarding their foreclosure process. 

What Should You Do If You Miss A Payment? 

So, you still need to pay a mortgage payment. What should you do first? Well, you can communicate clearly with your lender. You can always keep them informed about your own situations.  

Moreover, you can also discuss other options like forbearance and loan refinancing with your lender to alleviate some financial stress. You can follow the link provided to learn more information about these options. 

The Effect Of Missing Mortgage On Credit 

You might be wondering if missing payments can affect your credit score. Well, yes! It can. Both missed payments and foreclosures will affect your credit.

As I said, it is considered past due once you miss paying the mortgage payment by the due date.  

There is a 30-day period before the payment is counted as past due. So, once you miss and remain behind, your lender will most likely send a notice along with the last charges.  

They can also inform the credit bureau, which further affects your credit score. If you miss multiple dates, that might cause a significant drop in your credit score.   

This is why you must pay all your dues to be back on the right track. Your credit score may also improve.  

Try Not To Miss A Mortgage Payment 

There can be instances when you need help to avoid missing out on a mortgage. Luckily, you may find that it can possibly help you make up for the late mortgage payments. All you must do is figure out a perfect plan with your lender’s help.   

Financial stress can cause you to miss a mortgage payment. The good news is, it’s not the end of the world if you do. Continue to do your best to keep your account current so you won’t have to deal with penalties. 

Hopefully, you’ve enjoyed reading this article. If so, check out our other blogs for insightful content. 

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Abdul Aziz Mondal
Abdul Aziz Mondol is a professional blogger who is having a colossal interest in writing blogs and other jones of calligraphies. In terms of his professional commitments, he loves to share content related to business, finance, technology, and the gaming niche.

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