Will I Lose My Home if I Miss a Mortgage Payment?

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With all of the expenses that you must keep up with in your everyday life, it may sometimes be difficult to factor in your monthly mortgage payment. With this, you may be worried you end up missing one of these payments. Continue reading to learn whether you will lose your home if you neglect to make a mortgage payment and how an experienced Rockland County foreclosure defense attorney at The Law Offices of Allen A Kolber, Esq., can help you in correcting your missed payments.

What is the possibility of losing my home if I miss a mortgage payment?

To reiterate, monthly expenses can add up quickly. And sometimes circumstances get thrown at you that makes it all the more difficult to pay off your bills. This is why, if you just miss a single mortgage payment, then the consequences will likely not be as drastic as losing your home. This is especially the case if this is only a one-time occurrence.

However, even if you will not lose your home, you will still need to contact your lender to inform them of why you missed your mortgage payment. You should also assure them that it will not happen again, but if you believe that you will struggle to meet next month’s payment, then you must ask for their assistance in developing an alternate payment plan.

Will a certain amount of missed mortgage payments cause me to lose my home?

The bank does not necessarily want to foreclose your home. This is why they are understandable if you miss a payment and are willing to work with you on an alternate payment plan. However, if you fail to take any initiative to stop missing your mortgage payments, then this is when the bank may expedite the foreclosure process on your home. More specifically, your home may be brought to auction within the year.

What can I do to prevent the foreclosure of my home?

Again, you must act fast in developing an alternative payment plan with your lender so that you can keep up with your mortgage payments. One of the actions you can take is by applying for a loan modification. This will allow you to adjust your loan payment schedule to better match your current financial situation. For example, you can modify your plan so that you make less expensive mortgage payments over a longer period of time.

And in order to be properly prepared for your loan modification application, you must bring forward documentation that proves that you are not purposely neglecting your mortgage payments but instead require an adjusted plan to make them. Below are some examples of necessary documentation:

  • Financial statements.
  • Profit & loss statements.
  • Personal/business bank statements.
  • Personal/business tax returns.
  • Paystubs.
  • Utility bills.
  • Hardship letter.

Nonetheless, if you miss a mortgage payment, you should reach out to a skilled Rockland County bankruptcy attorney today.