Should You Be Late on Your Mortgage Payment?
It's no secret that paying your bills late - especially your mortgage payments - will only land you in a lot of financial hot water.
Between the shrinking credit score and the harassing calls from lenders, skipping or being late on payments will only cause you misery and sabotage your financial well-being in the future.
Or will it? With more lenders slow to move their feet on much-needed loan modifications for troubled consumers, it's no wonder that many individuals are considering the benefits of missing a mortgage payment.
The theory is that missing a mortgage payment will then initiate the foreclosure process, in which you and your lender has ninety days to set up a new and more manageable payment plan.
Consumers everywhere are curious to know: does it pay off to play chicken with your mortgage, or will you just make matters worse for yourself? Not surprisingly, falling into deliberate delinquency can wreak havoc on your credit score - and the chance at a loan modification isn't always guaranteed.
Additionally, the lenders of yesterday are not the lenders of today; a few years earlier, you had to be seriously behind in your mortgage payments in order to receive a loan modification, whereas today lenders want you to tell them ahead of time if you're having trouble making this month's payment.
In fact, several lenders have posted encouraging messages on their website regarding loan modifications, stating that you don't have to be in default to get much-needed relief on those hefty monthly bills.
From refinancing to reductions of the principal payment, there's no need to put your credit - and your financial well-being - at risk to help stretch your budget.
If that wasn't reason enough, governments have proposed new bills and legislature regarding lender action with loan modifications.
For example, in the United States, the Making Home Affordable plan doesn't necessitate that you miss a mortgage payment in order to receive aid from your lender; in fact, a mere change in personal finances that will eventually lead to hardship is enough to get you qualified for this program.
However, if you're currently delinquent or have missed mortgage payments within the past 12 months, you won't qualify for aid.
In other words, if you purposely miss a mortgage payment, you'll cut yourself off from one of the most helpful aid programs around! Additionally, don't regard your credit score as superfluous in this situation.
No matter how frustrated you may be with your mortgage, don't put your credit score at risk.
A missed mortgage payment will undermine your attempts to refinance your mortgage, get car loans or take out credit cards - additionally, a low credit score might also require that you pay hefty cash deposits for simple items such as cell phones and other contractual obligations.
Simply put, it's not worth it to put your credit score at risk.
If you're having trouble making that mortgage payment, don't suffer in silence; instead, talk to a lender who can provide you with more viable options.
Between the shrinking credit score and the harassing calls from lenders, skipping or being late on payments will only cause you misery and sabotage your financial well-being in the future.
Or will it? With more lenders slow to move their feet on much-needed loan modifications for troubled consumers, it's no wonder that many individuals are considering the benefits of missing a mortgage payment.
The theory is that missing a mortgage payment will then initiate the foreclosure process, in which you and your lender has ninety days to set up a new and more manageable payment plan.
Consumers everywhere are curious to know: does it pay off to play chicken with your mortgage, or will you just make matters worse for yourself? Not surprisingly, falling into deliberate delinquency can wreak havoc on your credit score - and the chance at a loan modification isn't always guaranteed.
Additionally, the lenders of yesterday are not the lenders of today; a few years earlier, you had to be seriously behind in your mortgage payments in order to receive a loan modification, whereas today lenders want you to tell them ahead of time if you're having trouble making this month's payment.
In fact, several lenders have posted encouraging messages on their website regarding loan modifications, stating that you don't have to be in default to get much-needed relief on those hefty monthly bills.
From refinancing to reductions of the principal payment, there's no need to put your credit - and your financial well-being - at risk to help stretch your budget.
If that wasn't reason enough, governments have proposed new bills and legislature regarding lender action with loan modifications.
For example, in the United States, the Making Home Affordable plan doesn't necessitate that you miss a mortgage payment in order to receive aid from your lender; in fact, a mere change in personal finances that will eventually lead to hardship is enough to get you qualified for this program.
However, if you're currently delinquent or have missed mortgage payments within the past 12 months, you won't qualify for aid.
In other words, if you purposely miss a mortgage payment, you'll cut yourself off from one of the most helpful aid programs around! Additionally, don't regard your credit score as superfluous in this situation.
No matter how frustrated you may be with your mortgage, don't put your credit score at risk.
A missed mortgage payment will undermine your attempts to refinance your mortgage, get car loans or take out credit cards - additionally, a low credit score might also require that you pay hefty cash deposits for simple items such as cell phones and other contractual obligations.
Simply put, it's not worth it to put your credit score at risk.
If you're having trouble making that mortgage payment, don't suffer in silence; instead, talk to a lender who can provide you with more viable options.
