What Happens if You Skip a Mortgage Payment?

Your mortgage payment probably represents the largest monthly obligation that you have. Your home is a big investment, and properly preparing for the payment every month for 30 years can be a bit difficult. As a result of this difficulty, many people get the idea to simply skip a mortgage payment. They think that if they could just have one single month off, it would make their lives so much easier. While this could be true, skipping a mortgage payment could potentially be devastating to your long-term financial situation. Here are a few things to think about in regards to skipping a mortgage payment. 

Delinquent Payments

While you may think of yourself as skipping a mortgage payment, the lender looks at your payment as delinquent. If you skip your payment one month and then send it the next, they do not simply forget about the payment that you skipped. The payment that you made for the month after you skipped is simply applied to your payment for the month that you skipped. This means that every payment from there on is now considered late unless you make two payments in one month. Making one late payment on your mortgage is enough to possibly hurt your credit. Making a late payment every single month can be potentially devastating for your credit. 

Default

Depending on the lender that you are working with, they may decide to put your mortgage into default status. They will send you a notice of default that says that you must pay the entire mortgage balance off or your house will be foreclosed upon. At this point, you can talk to them and may be able to get your mortgage back in good standing again. However, if you do this, you will usually have to get caught back up on your payments, which will negate the savings that you got from skipping a month. Even if you get the account back in good standing, there is a good chance that they will put something on your credit report about it. If you cannot afford to get your account back in good standing, you could potentially have your house foreclosed upon. This would really not be worth the one month's worth of savings that you got from skipping a mortgage payment. 

Credit Score

This scenario can really negatively affect your credit score. Your credit score is one of the most important numbers that you have. Without a good score, you will not be able to borrow money for anything again in the future. When your credit report shows that you have several late payments, they will lower your score drastically. As much as 35% of your credit score is affected by your payment history. This makes it the single biggest factor in your credit score. Therefore, skipping a mortgage payment could be a very bad proposition for you financially. 

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