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Q: I’ve been having trouble coming up with the funds to pay my mortgage payment each month. If I pay my mortgage bills late, will that hurt my credit score?
A: Paying your mortgage bills late will lower your credit score.
If you miss several payments, your score will fall quickly.
Many people in today’s tough economy face a debate each month over what bills they should pay first, with many choosing to make their auto payments and credit card bills first, probably because these bills are smaller and easier to pay.
But paying late on your mortgage bill can have serious repercussions far beyond your credit score.
According to data release by RealtyTrac, the United States saw more than 2.9 million properties receive foreclosure notices in 2010. That’s an all-time record. You need to be careful to not join this number.
If you’re having problems making your mortgage payments, call your mortgage lender immediately. Your lender might be able to provide you financial relief by modifying your mortgage loan so that your monthly payment becomes smaller.
The federal government also offers its Home Affordable Modification Program, which encourages lenders to do this. Call your lender and ask if it is participating in the program; most lenders are.
To keep a healthy credit score, it’s important to pay all your bills, including your mortgage bill, on time.