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When you take out a mortgage loan, not only is your lender expecting to receive their monthly payments on time every month, but also you are legally obligated to pay. Besides having a tremendous impact on your credit score, if you don’t pay your mortgage on time, there are other serious consequences. Here is a breakdown of what happens initially and how that can escalate into foreclosure:
Keep in mind, the foreclosure process varies by state, so contact an attorney to find out about your state laws. If you are struggling financially, talk to your lender BEFORE you miss your first payment. Lenders may work with their borrowers on payment plans, and being proactive is always the best policy.
Better yet, stay on top of your mortgage payments by maximizing your monthly cash flow. For ways to maximize your monthly cash flow and make the most profits out of your rental property, see our blog category "Maximizing Rental Profits." For creative ways to earn extra income, see our blog category, "Make Easy Money."