Are You Late On Your Mortgage Payments? –
If you are more than 30 days delinquent on their mortgage payments, your credit score will suffer severely. If you are having difficulty making your mortgage payments, your lender or a counseling agency may be able to assist you. Obviously, you should make your mortgage payment on time and demonstrate to the mortgage company that you are attempting to eliminate the debt as quickly as possible. If you fail to do so, the lender will report your delinquent payment to credit reporting agencies.
Late mortgage payments can have a significant impact on your credit score, causing it to drop considerably which will affect any loans you may need in the future. If you are delinquent by 30 days, your FICO score could drop by up to 100 points. Therefore, it is crucial to make payments within 16 days of their due date. If you can’t make the payment, consider taking a small loan from your local bank to cover the payment, or contact your mortgage lender to make other arrangements.
Try To Pause Your Mortgage Payments
If you are unable to make your mortgage payment on time, try to pause your payments immediately by contacting your loan servicer. The majority of mortgage companies offer a foreclosure prevention program and a forbearance loan modification to assist homeowners in financial distress. Ask your loan servicer if they provide this assistance, as the majority do.
Moreover, some mortgage lenders will allow you to suspend your mortgage payment to avoid foreclosure. Additionally, the company may offer a short sale option to reduce the amount owed if your financial situation has become seriously distressed. Ensure that you inquire about all of these alternatives so that you can make the best decision possible. If you do not have the funds to make the payment by the due date, you can also request a grace period from the company or the credit bureaus.
If you miss a payment, or you’re 100% sure you won’t be able to make a payment, you must inform your lender immediately. The lender does not want to foreclose on your property because they make money from the interest on the payments. Banks are not in the business of foreclosing on home and reselling them, banks lend money and make profits from the interest payments.
So if you’re in a tough financial situation temporarily, the banks are willing to work with you and help you avoid late fees, possibly keep your credit score intact, and work out a payment plan. Additionally, there are some nonprofit counseling agencies that offer financial protection services to assist homeowners with payments. These agencies can also examine your credit score to determine the optimal method for repaying any fees or missed payments. If you need help with your mortgage payments, contact us to explore all your options.