What happens if I miss a mortgage payment?

Missing a mortgage payment can have several consequences, and it is important to understand what may occur if this happens. Initially, if a payment is missed, the mortgage lender, such as Central Mortgage Company, will typically assess a late fee. This fee is usually a percentage of the missed payment and serves as a reminder of the importance of timely payments. If the payment is not made within a certain grace period, which is generally specified in the loan agreement, the lender may report the missed payment to credit reporting agencies. This can result in a negative impact on the borrower’s credit score, making it more challenging to secure future loans or credit. Should the missed payment go unresolved for an extended period, the lender may initiate a foreclosure process. This is a legal means by which the lender can reclaim the property due to non-payment. It is advisable for borrowers facing difficulty in making payments to communicate with their lender proactively, as many lenders offer options for assistance. For more specific information regarding policies and assistance programs, looking at the Central Mortgage Company website may be beneficial.