Beg Borrow Or Steal Make That Mortgage Payment

Beg,​ Borrow Or Steal,​ Make That Mortgage Payment
One of​ the​ most common things I​ hear when a​ prospective client contacts us for a​ mortgage refinance is​ I​ just missed a​ mortgage payment and I​ want to​ refinance before it's too late .​
When I​ ask them about their credit,​ most of​ them reply Oh I​ pay everything on​ time,​ I​ just got behind this one month on​ the​ mortgage.
It breaks my heart to​ tell them that in​ many cases,​ it​ already is​ too late .​
The reason is​ simple if​ you​ really think about it: If your home is​ your biggest investment,​ your greatest potential asset and your largest current liability,​ there is​ nothing more important than showing that you​ are able to​ make the​ payment on​ it​ every month .​
If you​ are in​ a​ cash crunch,​ you're better off missing or​ underpaying almost any other payment,​ such as​ a​ credit card bill,​ even your utility bill,​ instead of​ missing or​ even delaying your mortgage payment,​ because missing one mortgage payment can cost you​ tens of​ thousands of​ dollars over the​ years.
When you​ miss a​ mortgage payment,​ your credit score may not go down dramatically .​
But your mortgage credit quality will take a​ serious beating,​ and you'll carry it​ around for years .​
When you​ start out with a​ mortgage,​ regardless of​ what your FICO credit score is,​ you​ are rated an​ A,​ meaning you​ make your mortgage payments on​ time .​
If you​ miss a​ payment,​ and even if​ you're just late enough to​ qualify as​ 30 days late,​ the​ lateness is​ recorded and you​ will become an​ A- or​ a​ B .​
Just one mortgage lateness can keep you​ out of​ the​ refinance market for up to​ two years by automatically locking you​ out of​ the​ lowest payment programs such as​ Option ARMs or​ low-rate fixed mortgages,​ and you​ can forget about stated income programs,​ you​ will now have to​ prove where every penny comes from and you'll need more of​ them too .​
If it​ sounds a​ bit like high school,​ it​ is,​ but this time its for keeps .​
Keep missing or​ delaying payments,​ and you'll quickly see your mortgage quality decline to​ a​ C or​ D,​ which could prevent you​ from refinancing entirely by eliminating your eligibility from even standard rate programs .​
I​ have seen customers who started out at​ 6% wind up at​ 10% or​ more solely because they chose making payments on​ cars or​ credit cards over making their mortgage payment on​ time.
This hurts the​ most when you​ refinance or​ are ready to​ buy a​ new house,​ because you​ are usually borrowing more money than you​ were previously,​ either to​ pay off bills or​ make home improvements,​ or​ because you're getting a​ bigger house .​
So not only are you​ moving to​ a​ higher balance,​ but your now derogatory mortgage credit will force you​ into a​ high rate .​
If you​ need the​ cash to​ pay off bills and improve your credit urgently,​ or​ to​ purchase a​ home in​ a​ new area because you​ are relocating for work,​ you​ can wind up in​ a​ horrible Catch 22,​ very often disqualified for financing entirely,​ or​ with financing so unaffordable that you​ would rather not.
So what can you​ do about this? If you​ do better with automatic payments,​ sign up for direct debit payment with your lender,​ or​ arrange for your bank to​ automatically pay your mortgage every month on​ a​ specific date which far enough ahead of​ the​ due dates for your other bills that you​ won't be tempted to​ pay something else .​
The day after payday is​ a​ great day to​ do it .​
And the​ date should be far enough ahead of​ your due date that the​ bill is​ paid and posted on​ time .​
It might hurt that first month,​ but it​ will even out once you​ get used to​ the​ new schedule.
And if​ you​ are even thinking that you​ might miss a​ mortgage payment,​ call up a​ loan officer,​ and not one who works for your current lender,​ and get refinanced today .​
Not only will this put a​ little extra cash in​ your pocket and help you​ pay off your other bills,​ but it​ will usually allow you​ to​ go a​ few extra weeks without making another payment out of​ pocket .​
In fact,​ for qualified borrowers,​ we even have Zero Payment & Zero Interest for 90 Day loans which are perfect for people who are at​ risk of​ missing their next payment .​
Because there are no payments for up to​ 90 days,​ this is​ a​ very popular product amongst our customers .​
Option ARMs and Fixed-Rate Option ARMs (Hybrids) are also excellent products for people who are having trouble making ends meet temporarily,​ but expect to​ get back on​ their feet within a​ few month sor a​ few years,​ respectively .​
Loans generally take 15 days to​ close,​ so you​ really need to​ think ahead a​ little bit,​ which is​ hard for all of​ us .​
But instead of​ freezing up,​ or​ scrambling around looking for money,​ call up an​ experienced professional and get out of​ that jam before you​ get into trouble .​
You're better off dealing with the​ issue in​ the​ present instead of​ regretting the​ past .​
And no matter what,​ make sure you​ satisfy your mortgage payment obligation .​
Everything else on​ your credit report can be repaired,​ negotiated,​ but not your mortgage lates .​
Don't wind up in​ a​ situation like many of​ my callers are in,​ ready to​ dance but too late to​ the​ party,​ plan ahead and as​ always,​ protect your financial future today!

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