How BAD is a MORTGAGE repayment plan??

Avatar for lovemybigboys
iVillage Member
Registered: 04-02-2004
How BAD is a MORTGAGE repayment plan??
3
Wed, 10-27-2004 - 5:58pm
Accckkkkkkk......... We just can't do it anymore :-( We have been paying the mortgage late for the past 2 months. So today I called and asked if there was some type of something we could do because we still haven't paid for October but can on the 1st (of November, 30 days late :-( She said to call on the 2nd and we can set up a repayment program where we'll pay October's payment and then be one payment behind and play catch up for a certain number of months. I don't want to do that but it looks like it's our only option. She also said that it would show up as 30 days past due on our credit report. How bad do "30 days late" look on your credit report, I'm thinking there may be 5 in a row. :-( :-( :-( We were planning on buying a new house in 5-7 years, is that going to stop us???

Thanks for reading, Sunshine (who could use a few cyber hugs :-)
Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Thu, 10-28-2004 - 2:25am

I am so sorry to be the bearer of bad news, but late payments on your credit report are really, really bad.

All my best,
Danni

iVillage Member
Registered: 02-19-2004
Thu, 10-28-2004 - 10:32am
Once the late payments are more than 2 year old, it will affect your credit score less. There are a ton of factors that go into the credit score. Of course, the next mortgage company may apply more weight to late payments on a mortgage than lates on other bills or your overall score. But 5-7 years is a long way away. Just focus right now on getting current as soon as you can and avoiding any 60 day lates.

Just for reference, my ex went 90 days late on our mortgage TWICE before I found out. Each time it took him several months to get caught up. Once he even borrowed money from his mom without telling me so he could get caught up. Don't ask what he did with the money instead of paying the mortgage bill, I still don't know. When I found out (by checking my credit report in preparation for a job interview) I asked him when he was going to tell me, when we got forclosed??? If he had just told me, I could have taken a loan on my 401k and we would never have been late at all.

I had other things pulling my score down, like being maxed on my credit cards. When we separated and sold the house, we paid off all credit cards and my score went up quite a bit. Last time I checked, with the series of 90 day late payments being almost 2 years old, two scores were over 700 and one was almost to 700. So if this ends up being the ONLY negative thing on your credit, and after some time passes, it might not be that horrible.

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Avatar for lovemybigboys
iVillage Member
Registered: 04-02-2004
Thu, 10-28-2004 - 11:37am
Thanks so much for your input :-) As of now, this is the only negative, except the fact that we are overextended but are slowly working our way out of that as well. The "new" house won't even be thought about until all debt is paid off (around $30,000) and we can "prove" to ourselves we won't do the credit card thing again. But I know how life circumstances can change and they do almost daily with 3 kids ;-) :-)

Sunshine