MortgagesPersonal Finance

10 Different Options If You Miss A Mortgage Payment

Man and women looking at their accounts on paper and sat next to laptop on the desk

Missing a mortgage payment can be distressing, especially for homeowners who pride themselves on punctuality.

However, life sometimes throws curveballs that can derail even the most meticulous financial planners. If you find yourself in such a predicament, remember that there are multiple routes you can take. In this article, we’ll explore your options if you miss a mortgage payment, including the possibility of a fast house sale.

Open Communication with Your Lender

When you miss a mortgage payment, the first and foremost step is to contact your lender immediately. Being proactive and honest about your situation can go a long way. Lenders typically have a grace period (usually 15 days) during which you can make the missed payment without any penalties. However, if your situation is more long-term, they might offer loan modifications, forbearance, or repayment plans.

Consider a Repayment Plan

A repayment plan might be the best option if you anticipate getting back on track financially in a few months. This allows you to pay back the missed amount over a specific period. For instance, if you missed one payment, you could make half of that amount’s payment over the next two months.


Forbearance is when your mortgage payments are either reduced or suspended for a set period. Once the forbearance period ends, you’ll either pay the total missed amount or add a small amount to your regular payments until it’s cleared.

Loan Modification

You might qualify for a loan modification if you’re facing long-term financial hardships. This involves changing the terms of your mortgage to make it more affordable. The interest rate, the principal amount, the loan’s duration, or a combination of these can be adjusted.


Refinancing is taking a new mortgage to replace the old one. If you have built significant equity in your home and the current interest rates are lower than when you first took your mortgage, this could be an advantageous option.

Fast House Sale

Sometimes, the best action might be to sell your house quickly and use the proceeds to settle your mortgage. A fast house sale can be a blessing in disguise, giving you the flexibility to move to a more affordable living arrangement and eliminating the stress of missed payments. Companies specialising in fast house sales can expedite the process, ensuring you get a fair price without the prolonged waiting period typical of traditional sales.

Short Sale

A short sale might be an option if you owe more on your mortgage than your home’s current market value. This means selling your home for less than the outstanding mortgage amount. While this is not ideal, it’s better than facing foreclosure. Remember, you’ll need your lender’s approval for a short sale.

Consider Renting Out Your Home

If your home has extra rooms or a separate unit, consider renting it out. The additional income can help you catch up on your mortgage payments. If you have to move out for work or other reasons, renting the entire property can also be an option.


Though it should be a last resort, filing for bankruptcy can halt foreclosure. It allows you to reorganise your debts and keep your home. However, it has long-term consequences on your credit score, so consult a financial advisor or attorney before taking this step.

Seek Counseling

Non-profit counselling agencies can offer guidance and resources to help you navigate financial difficulties. They can also act as intermediaries between you and your lender, helping negotiate more favourable terms.

Is a missed mortgage payment a default?

When you get a mortgage, it’s like making a promise to your bank: “I’ll pay you back every month, on time.” If you miss a payment, it’s like breaking a tiny part of that promise. Now, is that immediately called a ‘default’? Not really.

Most lenders give you a grace period, usually about 15 days, to catch up without fuss. They’re saying, “Hey, we all have off days. No biggie.” But, if you keep missing payments and don’t talk to them about it, that’s when they might label it as a ‘default’.

In short, one missed payment isn’t an immediate default. But it’s like a warning light on your car’s dashboard: best not to ignore it! Always chat with your lender if you’re facing payment troubles. They’re there to help!


Missing a mortgage payment is undoubtedly stressful, but it’s essential to remember that you have options. Whether you opt for a loan modification, consider a fast house sale, or explore refinancing, the key is to act quickly and make informed decisions. Stay proactive, communicate with your lender, and seek advice when needed. Financial hiccups happen, but you can navigate them successfully with the right approach.

About author

Poppy loves personal finance almost as much as she loves her two cats, Tif and Taz.
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