My Blog
Posts Tagged ‘Credit Rating’
Can One Missed Mortgage Payment Affect Your Credit Rating? Yes! Here’s What to Do if You Miss One
Most people don’t know whether or not a single missed mortgage payment can have serious consequences for their credit score.
The good news is that there are things that can be done to mitigate the damage and help anyone who has missed a payment repair their credit. What are some options to help homeowners get back in the good graces of their creditors?
Own Up To The Mistake
The best thing to do is to admit that the payment was missed and immediately make amends for it. 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 as soon as it appears that a payment may be late or not forthcoming at all, it is 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. In some cases, someone may decide to make up for the late payment before making any further payments.
However, that only makes the mistake worse because a borrower will be considered late on all subsequent payments. It is better to make the most current payment on time and make the late payment the secondary priority.
Hire A Third-Party If Necessary To Negotiate A Loan Modification
It is important to not let emotion get in the way of 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 instead of having to go through a foreclosure proceeding.
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, it may be possible for a lender to forget that the missed payment ever happened.
Related Articles:
- Did You Know?: 4 Factors That Can Delay Your Mortgage Approval (and How to Avoid Them!)
- Refinancing Your Mortgage? Know These Key Terms Before You Sign Your Paperwork
- First-time Home Buyers: Here’s a Quick and Easy Guide to Your First Mortgage
- Applying for a Mortgage? 3 Easy Ways to Make the Process Easier — and Reduce Your Stress
- 3 Ways That You Can Leverage Mortgage Financing to Build a Real Estate Investment Portfolio
Mark Taylor | Arizona Home Loans | Blarming | Will You Listen to Me | Arizona Short Sales | Arizona Foreclosures | Arizona FHA Loans | Arizona USDA Loans | Real Estate Websites | Arizona HUD Homes | Ariona VA Loans | Fix My Broken Credit | Arizona Mortgage | Arizona Short Sale | Power Ranch Bank Owned Homes
by Mark Tayloron | Arizona Mortgage | The Mark Taylor Teamon |
Amerifirst Financial Inc. | By Mark Taylor © 2012 | Banker # BK0013635 | AZ NMLS ID 207897 | CA NMLS ID CA-DOC207897
Our Team | Arizona Mortgage | Blarming | Will You Listen to Me | Arizona Short Sales | Arizona Foreclosures | Arizona FHA Loans | Arizona USDA Loans
| Arizona HUD Homes | Ariona VA Loans | Arizona Mortgage | AZ Short Sale Help | Power Ranch Bank Owned Homes | Find me on Google Earth | Arizona Mortgage Sitemap
AmeriFirst Financial, Inc., 1550 E. McKellips Road, Suite 117, Mesa, AZ 85203 (NMLS # 145368). 1-877-276-1974. Copyright 2014. All Rights Reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates, and programs are subject to change without prior notice. All products are subject to credit and property approval. Not all products are available in all states or for all loan amounts. Other restrictions and limitations apply. License Information: Click Here for Licensing
Mark Taylor | Certified Mortgage Planner | NMLS 207897 | AmeriFirst Financial, Inc. | NMLS 145368 | 14350 N. 87th Street, Suite 310, Scottsdale, AZ 85260 | Direct: 480.289.7644 | Mobile: 602.361.0707 | mtaylor@amerifirst.us | AFI Privacy Policy
Real Estate Websites & Realtors Websites & Realtor Websites by Char Bennett of YourSiteNeedsMe