Posted on: 13th Jul, 2009 09:37 am
What is it called when a mortgage lender allows you to "skip" a payment and move it to the back of the loan?
deferment
I will lke to add on deferment -
Mortgage deferment may involve paying a lump sum at the end of the deferral period. Or, the lending company may charge you more than interest accrued for the days of deferment. You may like to read state regulations about mortgage deferral, or consult a personal financial advisor or a lawyer.
Also, the terms of deferral of mortgage payments are likely to be negotiable with your mortgage company. Especially when properties are destroyed by hurricanes and floods and deferral issues start, one should try negotiation as much as possible with the insurance and mortgage companies, as they will be as troubled as homeowners are.
Mortgage deferment may involve paying a lump sum at the end of the deferral period. Or, the lending company may charge you more than interest accrued for the days of deferment. You may like to read state regulations about mortgage deferral, or consult a personal financial advisor or a lawyer.
Also, the terms of deferral of mortgage payments are likely to be negotiable with your mortgage company. Especially when properties are destroyed by hurricanes and floods and deferral issues start, one should try negotiation as much as possible with the insurance and mortgage companies, as they will be as troubled as homeowners are.
Sometimes it happes with someone that he/she not able to make payment in this case-
If you ever anticipate you may not be able to make your mortgage payment, call your lender and let them know you are having financial hardships and discuss your options.
Basically, if you are having short term trouble, your way out is to ask for and convince the lender and their customer service department to agree to deferral or forbearance period.
Beware about a deferral! It may come in extra costs and in a lump sum once the mortgage deferment is over. Also, you are unlikely to get a deferral unless something big has happened - such as a hurricane, for example.
If you are having short term difficulty making the monthly mortgage payment, you are likely to get a forbearance plan and agree to catch up with payments by a certain date. Interest will keep accruing during the forbearance agreement - there is no way to stop this.
If you are unsure you'll be able to handle a mortgage payment after the forbearance period, you may seek a sale. That's the only way out. Don't wait to get months behind your mortgage payment schedule. This is affect your score and on top of all your lender may lose patience and foreclose upon your property.
If you ever anticipate you may not be able to make your mortgage payment, call your lender and let them know you are having financial hardships and discuss your options.
Basically, if you are having short term trouble, your way out is to ask for and convince the lender and their customer service department to agree to deferral or forbearance period.
Beware about a deferral! It may come in extra costs and in a lump sum once the mortgage deferment is over. Also, you are unlikely to get a deferral unless something big has happened - such as a hurricane, for example.
If you are having short term difficulty making the monthly mortgage payment, you are likely to get a forbearance plan and agree to catch up with payments by a certain date. Interest will keep accruing during the forbearance agreement - there is no way to stop this.
If you are unsure you'll be able to handle a mortgage payment after the forbearance period, you may seek a sale. That's the only way out. Don't wait to get months behind your mortgage payment schedule. This is affect your score and on top of all your lender may lose patience and foreclose upon your property.