What happens if I miss a loan payment?

Missing a loan payment can have several consequences, depending on the terms of the loan agreement and the policies of the lender, such as Residential Credit Solutions. Generally, the first consequence of missing a payment is that the lender will consider the payment late. A grace period may be offered, during which the borrower can make the payment without incurring additional penalties. However, if the payment remains unpaid after the grace period, the borrower may incur late fees. These fees can add to the total cost of the loan and may vary based on the lender's fee structure. Additionally, missing a payment can negatively impact the borrower’s credit score, as lenders typically report late payments to credit bureaus. A lower credit score can lead to more expensive borrowing terms in the future or difficulty in securing new loans. Repeated missed payments can lead to more severe consequences, such as the lender initiating debt collection procedures. In extreme cases, if payments are consistently missed, the lender may initiate foreclosure or legal action to recover the owed amount. It is always recommended for borrowers to review the specific loan agreement for details on missed payments and associated consequences. Seeking clarification directly from the lender regarding their policies can provide a better understanding of what to expect in such situations. For specific inquiries, one could look on the current web page for contact information.