What happens if I miss a mortgage payment?

Missing a mortgage payment can lead to a series of consequences, which vary depending on the policies of the lender and the specific terms of your mortgage agreement. When a payment is missed, the lender will typically consider the account to be overdue. During this time, the borrower may incur late fees, which can add to the overall cost of the loan. If the payment is not made within a certain number of days, usually 30, the lender may initiate communication to remind the borrower of the missed payment. It is important to note that missed payments can also negatively impact credit scores, which can affect future borrowing capabilities. If payments continue to be missed over an extended period, typically three to six months, the lender may begin the foreclosure process. Foreclosure is a legal procedure that allows the lender to repossess the property to recover the amount owed. Moreover, borrowers may face additional stress and financial instability during this time. It might be beneficial to review the mortgage agreement and understand the specific consequences outlined by the lender. If experiencing difficulties in making payments, some individuals find it helpful to explore options such as loan modifications or forbearance programs. For the most accurate and relevant information, individuals should consult the current information available on the official web page of the servicing company.