About 6% of all mortgages were at least 1 payment behind at the end of the March, 2014. The result of missing a mortgage payment is hurtful to borrowers’ credit. And a foreclosure can negatively impact a consumer’s credit score as much as 160 points.
Chris Birk, in a recent article, explores the heavy price of missing a mortgage payment: Why Missing Mortgage Payments Carries a Heavy Price.
There’s no significant difference in score impact between a foreclosure and a short sale or deed-in-lieu of foreclosure. They’re all going to hurt.
There are numerous reasons someone would struggle to make their mortgage payment. Unfortunately, events in life can result in changes in finances that are beyond our control.
Rather than waiting till missing a mortgage payment, it’s always better to seek out help from mortgage professionals at the first sign of trouble.
Especially with all the mortgage changes and government programs that have been released over the last few years, there may be something that can be done to reduce your monthly mortgage payment, resulting in staying current in your payments.