Things to Remember about Missed Mortgage Payments

by Fireside Realty Group 12/01/2019

Photo by: NeONBRAND via Unsplash

Missing a mortgage payment is not the end of the world. Many lenders are more than ready to work out a payment plan if you’re going through a rough patch or budgetary crisis. However, you may end up doing more harm than good to your credit and home ownership if you don’t contact your mortgage lender as soon as the financial need arises.

Below are things to remember about a late mortgage payment.

1. Mortgages Come with a Grace Period

Even if you pay one day or five days after the due date, it still might not be considered late since many lenders offer a grace period of about five to fifteen days. If you want to know about your specific grace period, contact your lender for grace period information.

2. A Late Fee Will Appear

If your payment is delayed, then it will most likely incur a late-payment fee. You can expect to pay the late fee in your next mortgage payment. Work with your lender to see if you can avoid a late fee by setting up an automatic payment method or if there are other clauses in your contract to have the fee waived in extreme circumstances.

3. Damage to Credit Score

A damaged credit score is one of the adverse effects of a late mortgage payment. Your payment history is of uttermost importance as it can affect your ability to secure financing of any sort in the future. Your lender usually reports your payment history, and if you are thirty days behind, your credit score may feature “late 30” next to the loan. This mark could drastically hurt your overall FICO® score.

4. Suffer Drastic Measures

When you suffer delinquent payment beyond 90 days, your lender automatically considers you in default on your loan. If left without a written waiver or payment arrangement, they may start to take foreclosure actions against you, which could lead to more public actions and eviction from the home. There are other things that can be done to retain your home, however. Bankruptcy affords the ultimate protection until your debts can be assessed and discharged by the government but should be a last option since it can remain on your credit report for ten years.

5. The Account Goes to Collection

Your account can go into collection if you are behind your mortgage payment. In that case, you will receive a phone call or a letter from your lender about the late fee and that your account is being sent to a collection agency.

Every borrower’s situation is different, depending on credit score and payment history. If possible, avoid falling short of your mortgage payment. The earlier you make the due payment, the better it is for you, but if you’re unable to, set up an arrangement with your lender.

Still have more questions about mortgages and how to successfully nail down the right price for you? Contact me, and I’ll point you in the right direction.

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Fireside Realty Group

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The number one promise at Fireside Realty Group is to always put our client and their needs first. For this reason, providing expert service during every step of the real estate process is nonnegotiable and is something our clients can expect. Our expert staff manages every part of the transaction – Sales, Staging, Photography, Contract-to-Close, Listing Management and Marketing, Technology and Systems, Mortgage Lender Referrals, and Make-Ready Services – to ensure our client’s have a 5-Star Experience. 

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Traditional brokerages have little or no concern with the client (buyer/seller) and leave it 100% up to their self-employed real estate agent to deliver the knowledge and service (or lack thereof). This means there is no consistent quality or standard of care and limited service by virtue of the capacity of a single agent. All of this can be risky for the customer. 

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Mediocrity is not an option at Fireside Realty Group, which is why our agents have areas of specialization and work as experts in their specialty. This means that every Fireside client will work with a real estate professional who has the knowledge and expertise to tend to their specific real estate concerns. You wouldn’t go to a cardiologist to solve a problem with your foot – you would go to a podiatrist! So for instance, why buy a mountain investment property from a typical agent who owns no mountain investment property? 

How is this different?

At Fireside you work with a team of expert agents who are trained to help with a variety of specific real estate needs. If you have a need that isn’t a fit for the agent you are currently working with, we will gladly refer you to another expert, or even outside the company if that is the best course of action…which is not the case in most brokerages.

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We invest in and use technology to ensure that Fireside Realty Group operations makes good on our promise of a 5-Star Experience. We have carefully tested and filtered out the gimmicks from the tools that really work. ALL agents are trained to use our technologies, tools, and systems in order to deliver the level of service that is required.

How is this different?

Other brokerages leave technology choices up to their agents. What this means is a lack of consistency because each agent uses a different system and operates based on their own individual preferences. We think you and your home or investment are too important to leave it up to a lone ranger agent and whatever tools they have at hand. 

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All Fireside agents have personally purchased and sold at least five homes, so they have first-hand knowledge of the client-side experience. This has shed light on areas in which the real estate experience was lacking and needed improvement. Our leaders have taken that learning and built a solid foundation for Fireside in which they continue to work in and improve all facets of the company including sales, contract-to-close and client responses in order to truly understand . 

How is this different?

Other real estate companies are filled with sales managers and leaders who are full of good intentions but have no experience working with the buying/selling customer, or whose experience is no longer relevant in today’s market. In these companies, the systems, tools, and advice for customers comes from theory or outdated practices.