What happens if you miss a mortgage payment?

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asked Nov 26, 2023 in Real Estate - Renting by Abdoaldu (1,660 points)
What happens if you miss a mortgage payment?

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answered Sep 19, 2024 by layla (84,650 points)
If you miss a mortgage payment your lender will send out a notice and may offer a 15 day grace period to pay the missed mortgage payment without a penalty.

If you fail to pay the missed mortgage payment then you will be paying late fees and more interest and you will still owe that missed mortgage payment and can still be foreclosed on even though you may the other mortgage payments.

A missed mortgage payment will also eventually be reported to the credit bureaus and lower your credit score.

You can pay half your mortgage if your lender accepts half payments or partial mortgage payments.

Some mortgage lenders don't accept partial payments and some hold them in special accounts that are called suspense accounts or unapplied funds accounts instead of applying them to the loan immediately.

You may also be able to sign up for a biweekly mortgage payment plan to make half your normal mortgage payment every 2 weeks and pay your mortgage down faster.

You can skip a mortgage payment but to skip a mortgage payment and keep your mortgage in good standing you must have a strong credit score to qualify for a skip-payment mortgage and you must otherwise be up to date on your mortgage payments.

You should be aware that you will still owe the interest and principal that you would have paid in that month.

You can usually skip a mortgage payment and add it to the end of the mortgage loan and pay it later.

But before you skip a mortgage payment and add it to the end of the mortgage you need to speak with the bank or lender who is holding the mortgage on your home.

Some banks will allow you to skip or defer a mortgage payment when you need too and then add the mortgage payment to the end of the loan.

But always speak to the bank or lender about it first otherwise if you just skip a mortgage payment then they will mark it down as being late or delinquent on your mortgage.

Then they will hit you with late fees on your mortgage and then it will be reported to the credit agencies that control your credit score.

Your credit score will then be lowered as a result.

But if you get approval from the mortgage company or lender of the mortgage to defer or skip the mortgage payment then it won't harm your credit score.

However skipping or deferring mortgage payments just makes the mortgage take longer to pay off and can add more interest.

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