16 Oct What Happens If I Miss A Mortgage Payment?
Are you a responsible mortgage holder but somehow forgot to pay your monthly payment? Every mortgage holder needs to repay the funds they received upon mortgage approval via monthly payments. These payments need to be made throughout the duration of the mortgage.
Due to an over-occupied schedule, borrowers often forget or end up delaying their mortgage payments that result in monetary penalties, fines, extra fee, and in worse cases, foreclosing of the property.
What Are Mortgage Penalties?
Being late one or two days is common and is often ignored by most lenders, but beyond that may create problems. In most cases, lenders look out for 15 days after stamping fines on a borrower that can also hurt their credit score. After 30 days, serious penalties are being awarded to the mortgage holder.
If 45 days pass by, an investigator is assigned to look into your account and potential defaults and debts you possibly have. After 90 days, your credit score will drop significantly and you may be on the verge of losing your property. Foreclosure may occur if the 120-day deadline is missed, however this will depend on your lender.
What To Do When Making A Late Payment?
If you have gone behind on your mortgage, it is preferable to make the payment as quickly as possible. If you are unable to make it by the late period deadline and have to wait until the following month when your next payment is due, you will be liable for paying both. By paying your entire payment, you can avoid incurring further late fees and penalties.
In case, you inform your lender in advance about the late payment, may be due to bad financial circumstances, your lender may work out a plan to help avoid penalties. In some scenarios, lender may provide you the option to adjust your repayment status so that you may not feel the financial burden you are facing currently.
How To Avoid Missing Your Mortgage Payments?
Understanding the specifics of your mortgage is one of the best methods to make sure you are ready to make your payments. Our Abbotsford mortgage brokers are here to assist you in staying informed about the details of your mortgage and to help you keep ready for the future.
Here are some pointers to help you avoid being late:
- Configuring your account so that payments are automatically withheld by your lender
- establishing prior notice of deadlines
Gaining an understanding of how your mortgage operates will help you in the long run. At Satbir Bhullar Mortgages, we are aware of your financial worries and can assist you in obtaining a simple mortgage with flexible repayment terms. In addition, we notify you in advance of any missed payments so you can avoid paying penalties.
We can help whether you want to renew, refinance, or get a home purchase mortgage in Abbotsford and Surrey. Please get in touch with us if you have any questions about mortgages.