Can You Skip a Month of Mortgage Payment?

It is common for individuals facing unexpected financial challenges to consider whether they can temporarily suspend their mortgage payments. While simply deciding to “skip” a mortgage payment without prior arrangement can lead to severe consequences, there are structured and official pathways available for homeowners experiencing financial hardship. Mortgage lenders and servicers offer various programs designed to provide temporary relief, allowing homeowners to navigate difficult periods without jeopardizing their housing. These options require proactive communication and agreement with the mortgage servicer, rather than unilateral action. This article explores the legitimate avenues for obtaining mortgage payment relief and outlines the significant repercussions of attempting to bypass these established procedures.

Official Routes for Mortgage Payment Relief

When financial difficulties arise, mortgage servicers often provide official programs to help homeowners manage their payments. Two primary types of temporary relief are forbearance and deferment, each designed to address different aspects of financial hardship.

Mortgage forbearance allows homeowners to temporarily pause or reduce monthly payments for a specified period. This option is for short-term setbacks like job loss, illness, or natural disaster. During forbearance, the lender agrees not to initiate foreclosure, and payments are not required. However, interest may accrue, and missed payments must be repaid later.

Mortgage deferment, often called a partial claim, postpones missed payments to a later date, typically at loan maturity, property sale, or refinancing. Unlike forbearance, deferred amounts are not expected immediately after relief. Deferment applies when a borrower can resume regular payments but needs more time to address missed amounts. It helps borrowers avoid a large lump-sum payment immediately after their hardship. Some loan modifications offer temporary relief by adjusting terms, like extending the loan term or reducing the interest rate.

Steps to Request Payment Relief

Contact your mortgage servicer promptly when you anticipate or experience financial difficulty, ideally before missing payments. Most servicers have hardship assistance departments; find their contact information on your statement or website.

Be prepared to discuss your financial hardship and its impact on payments. Have your loan account number ready, and provide details about your income, expenses, and the event causing distress. The servicer will use this to assess your situation and determine suitable relief options.

The servicer will likely request documentation to verify your hardship and financial situation. This may include pay stubs, unemployment statements, medical bills, or a hardship letter. Promptly submit all requested documents for a timely review.

After discussing options, obtain any payment relief agreement in writing. This confirmation should detail relief terms, such as forbearance duration, reduced payment amounts, or how deferred payments will be handled. A clear, written agreement prevents misunderstandings and protects your interests.

Unauthorized Payment Skipping and Its Repercussions

Failing to make a mortgage payment without prior arrangement leads to severe negative consequences. The initial impact often involves late fees. These fees are typically a percentage of the overdue payment and are added to your outstanding balance.

Many mortgage loans include a grace period, during which a payment can be made without incurring a late fee, though the payment is still considered late. If the payment is not received by the end of this grace period, the late fee is applied. A payment 30 days or more past due is reported to major credit bureaus.

This significantly damages your credit score. A lower credit score makes it harder and more expensive to obtain future loans, credit cards, or rent an apartment. Continued non-payment escalates the situation, leading to default on the loan. After 90 to 120 days of missed payments, lenders may initiate foreclosure, the legal process where the lender repossesses and sells the property to recover debt. Ignoring servicer communication worsens the situation and limits solutions.

Managing Repayment After Relief

Once a period of official mortgage payment relief concludes, homeowners must address the accumulated missed payments. Mortgage servicers offer several options for repaying these amounts to resume regular payments.

One method is a lump sum payment, requiring the borrower to pay all missed payments, including accrued interest, at the end of the forbearance period. This option suits borrowers who have recovered financially and can afford the full amount, though a large lump sum can be challenging for many.

Alternatively, a repayment plan allows the homeowner to repay missed amounts over a set period, typically 3-12 months. Under a repayment plan, the missed payments are divided and added to the regular monthly mortgage payments until the full amount is satisfied. This offers a more manageable approach for those who can afford slightly higher monthly payments.

A loan modification is another common option, especially for long-term financial hardship. This involves permanently changing the terms of the original mortgage loan. Missed payments may be added to the principal balance, and the loan term extended, potentially reducing the monthly payment.

Finally, with certain deferments or partial claims, missed payments may be added to the end of the loan term. This means the deferred amounts become due only when the loan matures, the property is sold, or the loan is refinanced. Communicate proactively with your mortgage servicer before your relief period ends to agree upon terms for resuming financial obligations.