Don’t Be Afraid To Discuss It With Your Mortgage Lender
Mortgage payments don’t necessarily show up on your credit rating, but being late on multiple payments can severely affect the interest your lender offers you when it comes time to renew your mortgage.
What is foreclosure and how can it damage my credit score?
If you miss three or more consecutive payments your bank or lender will likely start foreclosure proceedings. Foreclosure is when your bank or other lender begins the legal proceedings necessary to take ownership of your home. Banks and lenders are not interested in owning your home, but they will try and sell it so they can reduce the losses they incurred when you were unable to pay your mortgage.
Though many people think bankruptcy is the most damaging thing that can happen to your credit score, being subject to foreclosure is even worse. If you are applying for mortgage financing and have been foreclosed upon, it will make banks and lenders incredibly hesitant to lend to you. Bad credit is easily repaired, but if a previous foreclosure shows up on your credit report the number of lenders willing to work with you will be very few no matter how strong your current credit is.
What can I do to avoid foreclosure?
If you are concerned that you might be late on a payment or miss one altogether make sure you contact your mortgage lender or agent to see if anything can be done. Being forthright about any problems will likely play in your favour since banks and other lenders don’t want you to miss payments either. By discussing the situation with your lenders you can potentially come up with a solution, such as a different payment schedule or smaller monthly payments that will help you meet your financial obligations. Simply ignoring the situation and hoping it goes away never works for anyone, and will put you at odds with your bank or other lender and make them less willing to be flexible.
Banks, mortgage agents and other lenders understand that emergency situations arise and that sometimes despite your best efforts you may not be able to make a payment. That is why Tim Lacroix and CGY Mortgage are willing to work with you to find a mortgage that suits your budget and help you find a solution should you be late with or miss a payment.
For more information about our mortgage rates or to talk to Tim about augmenting your payment size or schedule call CGY mortgage today at 403.648.1541 and visit timlacroix.com