What happens when you skip a mortgage payment?

Most mortgage lenders don't allow you to actually skip payments. So if you miss a payment, all subsequent payments are considered late or delinquent.

Suppose you skip a payment in August. When you make your mortgage payment in September, the mortgage company considers it your August payment, which was never received. Consequently, September's payment is now late. The same thing happens when you make your October payment; it's applied toward September, and now your October payment is considered late. So once you miss a payment, you're a month late every month until that "skipped" amount is paid.

Many homeowners don.t know it works like this. And they don.t find out until they apply for a credit card or car loan and are told they're a "high risk" because of their delinquent mortgage payments. By then it's too late. Their credit has been significantly damaged, and it can only be repaired over time.

The best way to fix this problem is, of course, to avoid it all together and never miss a payment. But if you find yourself in the position where you simply have no choice, get caught up as quickly as possible. If you can't make a double payment the next month, pay a little extra each month until you're caught up again. You may have to live with a tighter budget for a little while, but better that than to have your credit ruined because of one missed payment.