Miss A Mortgage Payment? What Happens?

I was working on a normal weekday when I received a call from a frightened and scared woman. Her husband just lost his job and she believed the bank was going to take her house back. After trying to reassure her that all would be ok, I checked and her payment record for 11 years was flawless. It was a moment in my life when I realized I had an important role in clients’ lives. At Robert Floris’ Mortgage Architects office on the East Hamilton Mountain, we will help explain what happens if you miss a mortgage payment and what you should do.

If you miss a mortgage payment, it will affect your credit and the lender considers you in breach of your contractual agreement with them.

What Should You Do When You Miss A Mortgage Payment?

Contact your lender immediately to make arrangements to communicate and catch up on the loan. DO NOT catch up on the next payment. The bank will now consider you 2 times late, even if in your mind you are only one payment behind.

What Happens If You Miss Two Or More Mortgage Payments In A Row?

It’s a sad thing. Bad things happens to good people. Job loss, health issues or even accidents can hurt anyone. After 2 and sometimes 3 mortgage payments missed in a row, the bank is entitled to start the process of seizing your home.

Sell Your Home On Your Own – It Will Mitigate Costs

If it comes to this, try to sell your home on your own. It will mitigate costs. In Ontario, the lenders do have to sell the home at a fair market price. However the fees they attach are staggering. If you have lots of equity, and you believe your mortgage issues can be cured in 6 months to 2 years, contact your local mortgage professional for other suggestions.

Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

If you would like to apply for a mortgage online, please follow this link.

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