Missed mortgage payment? What happens…
July 21, 2015
Have you ever wondered what would happen if you missed a mortgage payment? How about two? According to ”Nine Rules of Credit” author Richard Moxley, it’s not until you’ve missed three consecutive payments that the bank starts to take action such as foreclosure proceedings.
Moxley says that a foreclosure is worse for your credit report than a bankruptcy. His advice to anyone who may find themselves in a precarious place financially 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 agent to find out what can be done. The same thing is true with any creditor.”
The mortgage is only the beginning – and you have to consider the fact that interest rates may be slightly higher the next time you need to renew your mortgage. Think you’re safe? Check out this article from the Globe and Mail: if interest rates go up just 1%, on a $200,000 mortgage, your mortgage payment goes up by 10%.
Part of the service my team and I provide to buyers is to make sure they’re educated about all the expenses related to home ownership. Don’t hesitate to get in touch with us if you have any questions about the Toronto Real Estate market!
Click here for the Robert Moxley article