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What Happens If I Miss A Mortgage Payment?

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In general, missing a mortgage payment will negatively impact your credit score and could lead to foreclosure if you aren’t able to catch up. Additionally, your lender may charge late fees or increase your interest rate. If you’re struggling to make mortgage payments, reach out to your lender as soon as possible to discuss your options.

Late Fees And Credit Score Impact

If you miss a mortgage payment, you will likely be charged a late fee. The size of the late fee varies by lender, but is typically a percentage of your total mortgage payment. For example, if your mortgage payment is $1,000 and the late fee is 2%, you would owe an additional $20.

In addition to the late fee, your credit score will also take a hit. Mortgage payments are considered one of the most important factors in determining your credit score, so falling behind on payments can have a significant impact.

If you miss multiple mortgage payments, you could eventually face foreclosure. This is the process by which your lender seizes your home and sells it in order to recoup their investment. Foreclosure is generally a last resort, but it is something to be aware of if you are struggling to make your mortgage payments.

The Clock Starts Ticking As Soon As You Miss A Payment

If you miss a mortgage payment in Michigan, you risk foreclosure if you wait too long to discuss payments with your lender. Mortgage payments are generally due on the 1st of the month. If you miss this deadline, your loan is considered to be delinquent. After 14 days, additional interest or late fees may be tacked on to your payment.

After 14 days, you may start to receive phone calls or letters from your lender encouraging you to discuss payment options. If you do not make a payment or contact the lender within 45 days, your lender will deliver a written delinquency notice and assign a single point of contact to your file. You may be able to discuss partial payment options with your lender for up to 121 days after your missed payment.

After day 121, if you are unable to make payments, the foreclosure process will begin. At this point, it is in your best interest to contact an experienced Michigan foreclosure attorney — if you have not done so already. Even if you are behind on mortgage payments, it may be possible to avoid foreclosure with legal assistance.