Month behind on mortgage

[Uncle]

I had my 341 on 8/3/2011 and expect a clean discharge(I don't foresee any issues coming up.) Money's tight right now and it would really help if I skipped a mortgage payment this month. I did not reaffirm and my payments on the mortgage are up to date. The mortgage is with Wells Fargo and I live in PA. Does anyone have any ideas of what might happen if I'm a month behind on my mortgage for 6-12 months?

[AngelinaCatHub]

I had my 341 on 8/3/2011 and expect a clean discharge(I don't foresee any issues coming up.) Money's tight right now and it would really help if I skipped a mortgage payment this month. I did not reaffirm and my payments on the mortgage are up to date. The mortgage is with Wells Fargo and I live in PA. Does anyone have any ideas of what might happen if I'm a month behind on my mortgage for 6-12 months?

If you wish a clean discharge, and yet you wish to skip a payment, what have you learned? Unless you wish to give your house away, I would stick by them like glue. You did not reaffirm, they could call your loan at any time.

What will you do down the line when other things get in your way and you use a skipped payment to get by? It is time to bite the bullet and get used to your new life style. Only my opinion. 'Hub

[justbroke]

Technically, if you pay your mortgage 29-days late everytime... it wouldn't be reported. However, going 30 days late then makes it a requirement that you have to pay the past due amount plus the current amount, or the lender may reject the entire payment. This is why you never want to go 31 days late if you "don't" have the money.

Besides, this is exactly how many people get into trouble with their mortgage, by letting it go 30+ days late. Please don't do this if you can avoid it. It usually occurs because one is robbing Peter to pay Paul.

So, to directly answer your question... you won't be able to go 31 days behind at all. You could go 29 days late for months without anything more than pesky phone calls.

[Uncle]

justbroke,

Is credit reporting really an issue I could face? As far as I know the mortgage company will not be reporting to the credit agencies.

Hub,

Maybe I wasn't clear. I have an income issue. Not a spending issue. I am out of work. Wife works. I have 3 small children. If I can't pay my mortgage, I can't pay it. I'll lose the house eventually if I don't pay. I get it.

I begin work next month when the kids go back to school. It's commission work, so it will be a few months before I receive a decent check. Hypothetically, is there a process that occurs if I don't make a payment (because I can't this month) and I keep paying each month for the next six months. Will the bank start foreclosure procedures? I don't believe they can send it to collections because I included them i bankruptcy.

[btbeme]

You can always call your lender. Wells Fargo has been very understanding and issues 1 and 2 month forbearances all the time (so do most lenders). Certainly worth a try. Be willing and able to fully document your situation.

[Scooter10]

I had my 341 on 8/3/2011 and expect a clean discharge(I don't foresee any issues coming up.) Money's tight right now and it would really help if I skipped a mortgage payment this month. I did not reaffirm and my payments on the mortgage are up to date. The mortgage is with Wells Fargo and I live in PA. Does anyone have any ideas of what might happen if I'm a month behind on my mortgage for 6-12 months?

As long as you stay under 30 days late the lien holder should not be able to accelarate your note per the contract, and if you run 1 month behind I highly doubt they will start the foreclosure process.

Is the house really worth it. I was in a simular situtation, stopped paying, and it took the lender 2 years to foreclose upon us. During that time I lived rent free and save up a pretty good sum of money to get life back on track. looking back it was well worth it...and I have 3 kids also

[Pandora]

Just wanted to add:

You need to check with your lenders' practices. For instance, while your mortgage payment may be due 1 September, and you believe if you pay before 1 October you are not 30 days late... thats not always how it works. Some lenders' work off of the last payment received as the start date of your 30 days. So if you paid (as example) your 1 September payment 15 August - however do not pay your October payment until 1 October, it will show 45+ days since your last payment. Many times if they dont mark it as "late" the interest will eat up your entire payment as you will have 15+ days of additional interest since your last payment.

Is it right? I dont think so... I believe it should be counted from the actual date due (i.e., first of the month to first of the following) but not all lenders do it that way.

Make sure you check....

[justbroke]

Pandora... I have never seen it work that way. I would not like that lender very much. The terms in the Disclosures (TILA -- Truth in Lending) pretty much say when the payment is due. You would basically have a "fleeting" due date under that scheme and interest calculation would no longer be "simple".

I hope that no one has that type of loan!

[Pandora]

JB -... yep... unfortunately I've seen it - its on the loans that compound interest daily. Our CU 2nd mortgage was that way... was terrible.

ETA: I even looked over the paperwork and while we had a fixed APR - they still did it daily. Same with our car..

[justbroke]

My CU calculates interest daily as well... for my cars. However, for first mortgages (non-HELOC), I don't think they can use anything other than simple interest. My due date doesn't change based on when I pay my car loans. I typically pay them a few days before due.

[Pandora]

Simple interest vs. standard mortgage is the key. You have simple interest vs. compound interest and then monthly vs. daily accrual. It all depends on how it's all calculated as to when best to pay / how to pay. It can be very confusing once you get into the nitty gritty.

This is why it pays to read "the fine print"

Here's a great site that helps explain how it all works for those that may be wondering:

http://www.mtgprofessor.com/A%20-%20Simple%20Interest%20Mortgages/simple_interest_mortgages_can_be_a_trap_for_the_unwary.htm

[justbroke]

I love that article and it explains it perfectly. I just didn't know that they allowed that with mortgages. Yes, we should all read our documentation and promissory notes before signing.