Have you ever accidentally missed a due date on a bill?  If you’re like most American’s you may have slipped and forgot to send in that payment; maybe you were on vacation, ill or overwhelmed with work.  There are many reasons this mishap could have occurred.  More than likely we expect to get charged a late fee and moving forward make a more conscious effort to pay the bill on time for the next payment.  But what happens if you’re late to pay your mortgage?

It is not uncommon for an individual to miss a mortgage payment; however, what you do after a missed payment can make all the difference. It is easy to fall behind on mortgage payments and can be difficult to catch up. Before you know it, you may find yourself facing foreclosure.  Going into foreclosure is the consequence of defaulting on your home, but it doesn’t have to happen to you.

Suggested Reading: Home Plus Program

Let’s go over what happens when you’re late on your mortgage, and how to avoid it at all costs.

Once you miss a mortgage payment, you can expect your lender to start moving quickly.

Couple of Days Late:  If you only miss your payment by a few days, chances are that you won’t have any kind of late fee or reporting to the credit bureau, but you should contact your lender to find out what your exact grace period is, many lenders will give you 15 days to pay your mortgage without penalty.

Day Fifteen: (15) days after the missed payment, the lender will assess a late charge. In doing so, the lender will often either send a letter or give you a call to get in contact about the missed payment.

30+ Days Late: Missing a mortgage payment by more than 30 days can drop your credit score, however, even though you may get a ding on your credit score, the good news is that you most likely won’t go into foreclosure after just 30 days delinquency.

90 Days Late: When you are more than 90 days late on a mortgage payment, you are subject to your lender starting the foreclosure process. In most states, (check your state for confirmation) falling behind more than 90 days on your mortgage means that your lender can initiate the foreclosure process—starting with pre-foreclosure.

If you are ever in a financial predicament and don’t think you’ll be able to make your mortgage payments, you do have some options—but only if you reach out to your lender.

Forbearance

You could potentially qualify for what is called forbearance, which is essentially when a lender and an owner agree to lowered or suspended payments until the owner is back on their feet.

Make a bulk payment

Do you have a tax return coming soon? Is there an opportunity for overtime or can you take a short-term side job? Take advantage of it! Making a bulk payment is the fastest way to catch up.

Talk to your current lender

While every lender is different, you may be able to work out a temporary repayment plan or another arrangement. There are no guarantees, and special conditions apply, however, it never hurts to ask.

Commit to the repayment plan

Whether you work out a repayment plan with your current lender or you refinance with us, it’s essential to keep up with your payment. Missing a payment with a repayment plan could cancel it.

Government Assistance Programs

There may also be government assistance programs available to help you bridge the gap in your payments or restructure your mortgage.

If you are struggling to make your monthly payments, don’t wait until foreclosure.  Being proactive about your finances is the best way to protect your homeownership.

The Certo Team
55 N. Arizona Place Suite #103
Chandler, AZ 85225
602-429-6789