What happens if I miss a loan payment?

When a borrower misses a loan payment, several consequences can arise, particularly in relation to their mortgage with a lending company like Caliber Home Loans. Initially, the lender may charge a late fee, which can vary depending on the terms of the loan agreement. This fee usually depends on how late the payment is, with many lenders allowing a grace period of a few days before penalties are applied. After the payment is overdue, the lender may report the missed payment to credit bureaus, which can negatively impact the borrower's credit score. A lower credit score can affect the borrower’s ability to secure future loans or favorable interest rates. If the missed payment remains unpaid for an extended period, the borrower may face more severe repercussions, including a risk of foreclosure, depending on state laws and the terms of the mortgage. It is important for borrowers to communicate with their lender when they foresee difficulties in making payments. Most companies, including Caliber Home Loans, may offer options such as forbearance or repayment plans to assist borrowers in distress. For specific details regarding policies and procedures, it is advisable to consult the loan agreement or refer to the current website of Caliber Home Loans.