What happens if I miss a mortgage payment?

When a borrower misses a mortgage payment, there can be several consequences that may arise from the situation. Initially, the lender, such as Wells Fargo Home Mortgages, will typically assess the missed payment and may charge a late fee. This fee can vary depending on the terms of the loan agreement, but it may be a percentage of the payment amount or a fixed dollar amount. If the borrower continues to miss payments, the situation can become more serious. After a certain period, the lender may report the missed payments to credit bureaus, which can negatively impact the borrower's credit score. A lower credit score may affect future borrowing opportunities and result in higher interest rates for other loans. Eventually, if the borrower does not resume making payments, the mortgage could enter into default status. This stage can lead to foreclosure, where the lender may initiate proceedings to reclaim the property. However, it is important to note that lenders usually prefer to work with borrowers to explore options such as loan modifications or repayment plans before resorting to foreclosure. For specific information regarding your mortgage situation, it is advisable to consult the terms of your loan agreement or refer to Wells Fargo's official website for assistance and guidance.