Skip Two Mortgage Payments
Lenders notify clients as soon as their mortgage steps into the delinquent territory. At the first sign of financial trouble, lenders take steps to communicate with the client. The sooner the two sides discuss the situation, the more likely the lender can help the client get back into good standing.
Mortgages have some loopholes and technicalities. They’re not built-in on purpose; they occur as a result of timing. For example, it’s possible to skip two mortgage payments on a technicality. Mortgage repayments arrive in arrears, so you don’t have a payment due the first month nor the last.
If you’re refinancing and get the timing right, you can skip two payments technically. Repayments are due on the first of the month. If you close refinancing before the 15th of the month and take advantage of the 15-day grace period, you skip two repayments on the old mortgage.
Now, if clients need to skip two repayments because they’re experiencing financial hardship, it’s a different story. Lenders require clients to repay the mortgage 100% in full, so there are no skipping payments. Clients on the verge of missing two repayments must communicate with the lender promptly.
Your client might qualify for a loan modification or deferment. Brokers are resources for clients. As a resource, it’s a good idea to let clients know that interest continues to accrue as long as the mortgage remains outstanding.
Mortgage Street works with brokers and their clients. We work with clients in various financial situations.
Skip Two Mortgage Payments Conclusion
It’s possible to skip two mortgage payments on a technicality. However, the move doesn’t save the client a significant amount of money. It also takes careful planning and requires refinancing. Mortgage Street helps clients save money and maximise their mortgages. For more information, contact our loan specialists.