What happens if I miss a mortgage payment?

Missing a mortgage payment can have serious implications for borrowers. When a payment is missed, the mortgage lender, such as Franklin American Mortgage Company, may assess late fees as stipulated in the loan agreement. These fees can increase the total amount owed, making it more challenging to catch up on payments in the future. If the payment is not made within a specific grace period, the lender may report the missed payment to credit bureaus. This can lead to a drop in the borrower's credit score, which can impact future borrowing opportunities. Continued missed payments can result in the mortgage becoming delinquent. In more severe cases, prolonged non-payment may lead to foreclosure, where the lender can take possession of the property to recover the unpaid loan balance. It is advisable for borrowers who are struggling to make their mortgage payments to communicate with their lender as soon as possible. Often, lenders may offer alternative solutions, such as deferment or loan modification options, to help borrowers get back on track. For additional information, one might find it useful to visit the official Franklin American Mortgage Company website for guidance and resources.