Missed A Home Payment? Here’s What You Can Do

I know you’ve heard the warning that it is not good to ignore payments on home equity loans and that your home is a collateral, blah, blah… Well, we all know this fact, but there is another pressing fact – lack of funds or funds not being sufficient enough to stretch through the month. In such and other circumstances, you may be forced to miss a home payment.

What should you do when you miss a payment?

1. The first thing to do is NEVER try to ignore it – one missed payment is the first step of a downward spiral that could end up with you losing your home.
2. Next, immediately call your lender and inform them, and explain the reasons for missing the payment.
3. Thirdly, try to come to some arrangement with the lender: you could make the payment the following month or in installments if it is a large sum.
4. If you think you still cannot handle the payments, you need to sit down with your lender and discuss other options like for instance a new payment plan with a lower sum.