I would just like to lead by saying, your mortgage payment doesn’t always show up on your credit report, but where it is going to bite you (if you are late on multiple payments), is at renewal time & it will hit you right in the pocket……

If you miss three consecutive payments or more in a row, it will lead to foreclosure proceedings (yuck), which is when the bank or lender starts the process of legally taking ownership of your property due to the lack of payments. Believe it or not, banks or lenders don’t want to own your home, but if the lender isn’t getting paid, it will try and sell the property in order to reduce its losses. Foreclosure shows up under the public record portion of your credit report……

You may assume that bankruptcy is the worst thing you can do for your credit; however, if you are applying for mortgage financing, going through a foreclosure is the absolute worst thing you can do for your credit. Bad consumer credit can be rebuilt fairly quickly, but very few lenders will look at providing financing for you if you have a previous foreclosure showing up on your credit report, regardless how strong your current credit is.

If you find yourself in a situation where you may not be able to make your mortgage payments, contact your mortgage lender or mortgage broker to find out what can be done. In all my years in the mortgage biz, I’ve never seen the attitude of pretending it will all go away actually work for anyone.

As always, if you have any questions about the mortgage industry, never hesitate to get in touch 🙂