How to Handle a Missed or Late Mortgage Payment

It is unlikely that you took out a mortgage with the intention of not making timely payments to the bank or credit union that made the loan. However, a job loss, unexpected expense or other unforeseen issue could make it difficult to keep up with a home loan. Fortunately, there are ways to keep the damage of a missed or late payment to a minimum.

miss a mortgage payment

What Happens If You Miss a Mortgage Payment?

There May Be a Grace Period

Technically, the mortgage payment isn’t considered late until a week or two after the actual due date. Therefore, if your payment is due on the first day of the month, it may not be a big deal if you make it the next day when you get paid. However, if you aren’t able to make the payment within the grace period, call your lender and explain the situation. It may be possible to have the balance rolled into future installments. (Read on how soon should you start shopping for a home loan here.)

Attempt to Refinance the Loan

If you truly can’t afford to make your mortgage payments in a timely manner, it may be possible to refinance it. This could help you to get a lower interest rate or extend the term of the loan. Extending the term lowers your monthly payment, but it will mean paying more interest. In the event that refinancing isn’t possible, you could look into selling the home or asking about a short sale. A loan officer in Las Vegas may provide insight into mortgage products that may be available.

Ask to Have Fees or Other Penalties Waived

By communicating with your lender, it may be possible to have late penalties or other fees waived. Furthermore, it may reduce the chances that the lender chooses to foreclose on the property. Remember, whoever holds the mortgage would rather get partial payments than spend time and money going through the foreclosure process.