What happens if I miss a mortgage payment?

When a borrower misses a mortgage payment, several consequences can arise, depending on how the mortgage agreement is structured and the policies of the lender, in this case, Home Capital Group. Initially, the borrower may receive a grace period after the due date, during which no penalties are imposed. However, if the payment remains unpaid beyond this period, the borrower may incur late fees. Ongoing missed payments can lead to more serious issues, such as the possibility of the mortgage entering default status. This can have long-term repercussions on the borrower's credit rating, as lenders typically report missed payments to credit bureaus. A lower credit score can make it more challenging to obtain future financing or refinance existing loans. Once a mortgage is in default, the lender may begin a foreclosure process, which is a legal procedure that allows the lender to take possession of the property to recover the outstanding debt. The timeline for foreclosure can vary significantly depending on the jurisdiction and specific lender policies. Communication with the lender can be beneficial if a borrower faces difficulties making payments. Sometimes, lenders like Home Capital Group may offer options for repayment plans, forbearance, or loan modifications to assist borrowers in maintaining their mortgage. For specific policies and options, it might be helpful to check the current information on homecapital.com or consult the relevant sections regarding payment plans and assistance.