Missing a single mortgage payment can serious impact your credit score. But the good news is that there are things you can do to mitigate the damage.
Own Up To The Mistake
The best thing to do is to immediately contact the lender and admit that the payment was missed. For the most part, mortgage lenders are sympathetic to the fact that people miss payments for reasons that may be beyond their control.
By calling the lender immediately, it’s easier to make arrangements to roll that payment back into the mortgage or take other steps to decrease the odds of a negative remark being made on a credit report.
Don’t Let A Single Missed Payment Turn Into Multiple Missed Payments
While a single missed payment can hurt a credit score, it is important to not compound the mistake by missing more payments. If possible, make up for the late payment before the next payment is due.
But at the very least, try not to be late on any subsequent payments.
If you can’t make the missed payment before the next payment is due, it’s generally better to make the most current payment on time and make the late payment the secondary priority.
Hire A Third-Party To Negotiate A Loan Modification
There are numerous benefits in hiring a professional to help with negotiating a modification to a mortgage. When a borrower hires a credit counselor or a bankruptcy attorney to talk his or her creditors, the negotiations can stay professional and on topic.
In most cases, a lender will be willing to make modifications for those who need them because it is better to get the money from the borrower willingly, rather than going through a foreclosure.
While a missed mortgage payment can be bad news for a credit score, it is possible to make amends for the missed payment while minimizing long-term damage to a borrower’s credit score. By owning the mistake, staying current on all future payments, and working with a third-party to negotiate a loan modification, you may be able to mitigate the damage to your credit rating.
Editor's Note: This syndicated content is edited by Marimark Mortgage before we distribute it, to better inform our readers.