missed mortgage payment

How To Avoid a Missed Mortgage Payment

There are several ways to avoid a missed mortgage payment including setting up automatic payments, using your mortgage lender's app, taking advantage of reminders, finding debt help, speaking to your lender, changing to interest-only, and getting cash for your car title.

In the subsequent sections, we will explore each one in detail to give you a thorough understanding of each method.

Top 7 Tips To Avoid Missing Your Mortgage Payment

1. Set Up Automatic Payments

These days, all banks and mortgage lenders let you set up automatic payments to make life easier. Typically, you can do it online or over the phone, which allows you to save time.

Of course, this method means you must ensure you have enough funds in your account at the right time each month to cover the automatic payment! With that said, we'll give you a tip on how to get a one-off near-instant cash influx using a title pawn if you don't have sufficient funds later. 

2. Use Your Mortgage Lender's App

Using your lender's app can help you easily track how much you owe. Find out whether your lender has a mobile app (they don't all have one yet), download it, and log in. You may well be surprised by how easy keeping up with mortgage payments is by doing so. 

3. Take Advantage Of Reminders

If you have a phone, you have reminders, so we highly recommend using them. This is especially beneficial if you tend to forget things and can't set up automatic payments. 

While you can set the alarm to trigger on the day your mortgage payment is due, we suggest setting it a week or a few days in advance. That way, you can transfer money into the relevant account ahead of time and easily avoid a missed mortgage payment.

mortgage reminder

4. Find Debt Help

Worrying about missing a mortgage payment should be a one-off ordeal. However, if you're realizing it has become a recurring problem, it might be time to seek debt help.

Thankfully, there are plenty of debt relief services, easily accessible financial information, and handy tools online to help navigate your economic future.

If you decide to go with a debt counseling service, ensure it is accredited by one of these two organizations:

  • The National Foundation for Credit Counseling (NFCC)
  • The Financial Counseling Association of America (FCAA)

Generally, you can find accredited debt help for free or very low cost at the following establishments:

  • Nonprofit agencies
  • Extension offices
  • Credit unions
  • Religious organizations

5. Speak To Your Lender

If you've already missed a mortgage payment, it's important to know that banks shouldn't start repossession proceedings while actively negotiating your settlement. Note the word active, though. If they've written to you and you're choosing to ignore the letters, they can argue that negotiations aren't happening and begin repossession. 

So, you shouldn't miss repayments without speaking to your lender first. Sadly, this isn't a "bury your head in the sand and hope for the best" situation. Having a chat with them could open your eyes to different funding routes and saving opportunities that can help you avoid a missed payment.

6. Change To Interest-Only

If you need to really reduce your payment to avoid missing it, ask if you can switch to an interest-only mortgage. That way, you aren't paying off the loan itself. Depending on how far into your mortgage you are, it could drastically reduce your monthly payment. 

However, if you've only recently acquired the mortgage, it won't make a massive difference.

Another thing to note is that an interest-only mortgage will cost you more in the long run. Therefore, switching back to capital repayment as soon as you can afford to do so is crucial.

cash for title

7. Get Cash For Title

If all else fails, you can borrow money against the value of your vehicle with an Alabama title pawn. As you can see from the following, our process is quick and easy:

  1. Complete the online form found on this website. 
  2. Sit back and wait for one of our loan representatives from your closest Alabama Title Loans, Inc. location to give you a call. They'll tell you about the process and help you pick a meeting location (you don't have to come into the store).
  3. Wherever you decide to meet with the loan associate, make sure you bring your state-issued photographic identification, your lien-free title of your vehicle, and your vehicle itself.
  4. Wait while our loan representative examines your documents and vehicle to determine how much you can qualify for. 
  5. After the inspection, you will complete the paperwork with their help.
  6. Finally, you'll receive the money you need on the same or very next bank business day. 

Get A Title Loan Today!

Acquiring a title loan might be the best option to avoid missing a mortgage payment if you're out of options. Submit our online inquiry form today to kickstart the process. 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

June Mckaig

June Mckaig writes articles on finance and budgeting, hoping to provide insight amidst the overwhelming crowds of information on the internet. She feels that with all this accessibility comes a lot of false data, and she would like to contribute astute, helpful input that she knows can help others. If you would like to learn more about June's research, read more here.