Picture this: It’s the first of the month, your bank account is looking light, and that mortgage payment is staring you down. You start wondering — can you skip a mortgage payment? Just this once?
Well, not exactly. While you might have options like mortgage deferment or mortgage forbearance, skipping a payment isn’t as simple as pressing “pause.” Let’s break down what happens when you miss a payment, what your lender might do, and how you can avoid getting behind on mortgage payments in the future.
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What are the consequences of missing a mortgage payment?
Your lender typically reports a missed mortgage payment to credit bureaus after about 30 days. If you’re just a couple of days late, you might dodge a credit hit, but expect unpaid late fees on mortgage payments.
Here’s the kicker: Next month, you’ll owe this month’s payment and next month’s, plus late fees. That’s a hefty bill to swallow all at once. Not to mention, if you continue to miss payments, your lender may start charging additional penalties or adjusting your loan terms — making it even harder to catch up.
Will a skipped mortgage payment put my home in foreclosure?
One skip mortgage payment incident won’t trigger foreclosure, but it puts you in dangerous waters. Mortgage contracts don’t take kindly to missed payments, and some lenders aren’t exactly the forgiving type.
Laws vary by state, but consistently falling behind on mortgage payments could lead to a foreclosure filing. If cash is tight, consider a side hustle, extra work hours if possible, or mortgage forbearance before things spiral.
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What should I do if I miss a mortgage payment?
So, you missed a payment — now what? Time to get proactive.
1. Contact your lender immediately
Ignoring it won’t make it disappear (like with many other situations in life). Many lenders offer late mortgage payment forgiveness plans or short-term repayment programs. If you’re upfront about your situation, you might avoid extra penalties. If you’re struggling due to a temporary setback — like medical bills or job loss — ask if your lender offers hardship programs. Some banks provide short-term relief options that don’t immediately affect your credit.
2. Look at budget and expenses
Are your expenses outpacing your income? Cut unnecessary spending, make a budget that works for you, and redirect funds toward your mortgage. Consider methods like loud budgeting to stay on track. Start by reviewing your largest expenses first — subscriptions, dining out, and impulse purchases add up fast.
3. Look into mortgage relief programs
Government-funded mortgage relief programs exist to help homeowners struggling with payments. Your lender might have resources, but also check state and federal websites for mortgage deferment, forbearance, or other options.
4. Refinancing
Refinancing could lower your interest rate and reduce mortgage payments — but only if you qualify based on your credit score plus employment and financial info. If your credit score is still in decent shape, this might be a smart long-term fix. If interest rates have dropped since you took out your loan, refinancing could lower your monthly payment significantly. Don’t forget to factor in closing costs, though — they can range from 2% to 5% of your loan amount, and put a dent in your savings.
5. Rent out your home
If you’re struggling, renting out a room (or the whole place) could generate enough cash to cover your late mortgage payment forgiveness efforts. Just be sure to check local rental laws so you don’t replace one headache with an even bigger one.
6. Mortgage forbearance
A lender-approved mortgage forbearance allows you to pause mortgage payments temporarily. However, it’s not free money — you’ll need to pay it all back, often with interest. This can be done through a lump sum payment, additional monthly payments, or a loan modification. Interest typically continues to accrue during the forbearance period.
7. Short sale
A short sale occurs when a homeowner sells their property for less than the remaining mortgage balance, with the lender agreeing to accept the lower amount as full payment. This option is typically pursued when a homeowner is behind on mortgage payments and mortgage deferment or mortgage forbearance aren’t possible. While it does impact your credit, it’s generally less damaging than foreclosure and may help you avoid unpaid late fees on mortgage payments piling up.
Short sales can be complex and require lender approval, so get ready for negotiation. You’ll also need to prove financial hardship and demonstrate that you’re unable to continue making mortgage payments.
8. Deed in lieu of foreclosure
A deed in lieu of foreclosure is when a homeowner voluntarily transfers ownership of their property to the lender to avoid foreclosure. This option can be beneficial for homeowners who can no longer afford their mortgage but want to minimize the impact on their credit and avoid the legal process of foreclosure. Lenders may agree to this arrangement if the home is in good condition and has no additional liens.
A deed in lieu of foreclosure won’t magically wipe out all your financial responsibility, though. Some lenders may still require repayment of any remaining loan balance unless they explicitly forgive the deficiency.
9. Consider selling your home
If all else fails and you simply can’t afford your mortgage, selling and downsizing could be the best move. Renting for a while might be a smarter financial reset than continuously fighting an uphill battle. Obviously this is an emotional and difficult decision, but if owning your home is causing daily stress, imagine how awesome it’ll feel to sleep well at night again.
You’ve Got This: Weighing Your Options
Skipping a mortgage payment isn’t a get-out-of-jail-free card — it’s more like stepping onto a financial landmine. Your best bet? Get ahead of the problem with mortgage forbearance, mortgage deferment, refinancing, or cutting back on expenses before things get dire. And if you’re in a pinch, don’t wait — talk to your lender, explore relief options, and make a game plan to keep your home secure.
FAQs
Can you defer a mortgage payment?
Yes, some lenders offer mortgage deferment, letting you postpone payments. However, deferred payments usually get tacked onto the end of your loan, and interest may still accrue.
What happens if you miss one mortgage payment?
A missed mortgage payment might lead to unpaid late fees on mortgage and a hit to your credit score after 30 days. Multiple missed payments can result in foreclosure proceedings.
How many months can you defer a mortgage payment?
It depends on your lender and program. Some mortgage forbearance plans last a few months, while long-term mortgage deferment options might extend payments to the end of your loan.
Do you skip a payment when your mortgage is transferred?
No, transferring a mortgage doesn’t mean skipping payments. You must continue making payments as scheduled to avoid penalties.
Do mortgage companies offer skip payment?
Some lenders allow a temporary pause on mortgage payments through programs like mortgage deferment or mortgage forbearance, but terms vary. Always check with your lender.
