What Happens If You Do Not Pay Your Mortgage Payment?


Quick Answer

The primary effect of not paying a mortgage payment is the negative effect on your credit score. Missing mortgage payments affects your credit score greatly due to the large amount of money being loaned in any mortgage.

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Full Answer

As creditors individually gauge their willingness to lend money based on someone's creditor score, everyone's experience differs if they don't pay a mortgage payment. Depending on the situation, your other lines of credit, if you have any, may be affected. In general, other creditors may increase your interest rates, effectively charging you more to borrow money. Creditors also tend to reduce the amount of money you can borrow from them or offer lower borrowing maximums if you seek to open a new line of credit.

If you don't pay multiple mortgage payments in succession, your creditor may choose to foreclose on your property. Creditors generally decide to foreclose after a third missed mortgage payment, and even then may choose to take a long time proceeding with foreclosure. The process of foreclosure costs the lending institution greatly, so they take time in the hopes the original mortgage payer can pay the loan back. In addition, many creditors are in the process of foreclosing on properties at once, generally slowing down the process.

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