Have you financially struggled to pay your mortgage or property taxes? This could even happen inadvertently if you’re dealing with the throws of busy everyday life – it’s as easy as thinking a spouse or significant other has made a payment when neither of you actually has. Let’s take a look at how missed payments can affect homeownership and our DomiDocs’ HomeLock™ solution so you’ll never have to worry again.
How Do Missed Payments Happen?
Given the ups and downs of today’s economy, it’s easy to fall behind financially. Sometimes there’s simply not enough money to go around which can turn into partial or late payments, or maybe none at all. It’s important to talk to your bank should you find yourself in such a position as you need to protect your home, as well as your credit score. And of course, inadvertently missed payments can easily happen during our bustling day-to-day lives full of seemingly endless responsibilities.
What Can Happen if You Miss a Payment?
It depends on a number of factors, but if you fail to make a mortgage payment or pay your property taxes, you’re in real jeopardy of losing your home. The government doesn’t take lightly to not getting paid as they use your tax money to fund local services for you and your family to enjoy. Unpaid property taxes can quickly turn into a lien against your home, and while there are steps that must take place before you will legally lose your home, a tax authority may file a lien and then offer up your home in a tax deed sale for the amount of the unpaid taxes. In some states, homeowners can redeem or buy back their home by paying the new buyer the amount of the tax sale, including interest, during a set period of time. A missed payment also immediately and negatively affects your credit score, and will most likely result in having to pay a late fee ranging from five to 10% of the monthly mortgage payment due.
What to Do if You’ve Missed a Payment
The first thing to do if you’ve missed a payment is to contact the creditor immediately. Explain your current situation and give details as to why the payment was missed, then ask how they can work with you to come to a mutual resolution, such as a payment plan or loan modification, to ensure you’ll be staying in your home. If a mortgage lender has contacted you first about a payment you’ve missed, do not ignore their communication under any circumstances as this will surely lead to a worsening situation. You can also check your mortgage statement to see if there’s an automatic grace period provided by your lender. Typically a lender allows 90 days before they consider you to be in default of your mortgage loan.
How to Avoid Missed Payments
Have your lender set up an escrow account for property taxes and insurance where money is set aside through the monthly mortgage payments you’re already making to pay for taxes and insurance when they’re due annually. This provides peace of mind and security in knowing you’re keeping your financial homeownership on track.
DomiDocs’ HomeLock™ to the Rescue!
Offering the ultimate way to digitally lock your home against virtually all homeowner fraud, HomeLock™ is America’s #1 home title and property fraud protection system. Scanning 200+ data points and with 24/7/365 monitoring, HomeLock™ will alert you to missed mortgage, property tax, HOA, or rental payments, so you’ll never have to worry again. Besides missed payments, HomeLock™ offers protection from property, equity, and rental income theft, along with lien filings, unauthorized use, and system or human error misfiling. And when you register today, you’ll receive a free 7 Year Home History Scan!
HomeLock™ includes our comprehensive award-winning Homeowner Management Platform designed to make your life as a homeowner as easy as it can be with functional tools to help save time and money including document organization, market value tracking, finance and accounting, and more!
Author – Connie Motz