How To Skip A Mortgage Payment Without Penalty

Due to the coronavirus pandemic, many homeowners are having trouble paying their mortgages. Here are some useful details about your rights and available options. Share & print.

A skip-payment mortgage is a home loan product that allows a borrower to skip one or more payments without any penalty. The interest accrued during the skipped periods will instead be added to the principal, and monthly payments will then be recalculated once they resume.

If you are facing money struggles, you are not alone

Help is available. The majority of homeowners qualify for forbearance due to a financial hardship brought on by the coronavirus. When you are granted forbearance, your mortgage servicer or lender agrees to temporarily suspend or reduce your mortgage payments while you get your finances back on track.

Forbearance is not automatic. You must request it from your mortgage servicer. Although taking this action now can help you stop making payments and prevent foreclosure, it might seem like a big step to take. Share this.


Forbearance ends with a payment plan, not a lump-sum payment

When the COVID hardship forbearance period is over, homeowners who received it are not required to pay back their paused payments in full. To discuss a repayment strategy that works for your circumstances, you can speak with your mortgage servicer or begin working with a HUD-approved housing counseling organization.

Most servicers must offer forbearance, and the others can provide options

All mortgages that are backed or sponsored by the federal government, including those from HUD/FHA, VA, USDA, Fannie Mae, and Freddie Mac, are subject to the COVID hardship forbearance. This includes most mortgages. If you have a mortgage that is backed by the federal government, you have the right to request and receive a forbearance period of up to 180 days. This means you can stop making payments on your mortgage for up to six months. You can also ask for a forbearance extension of up to 180 more days, for a total of 360 days.

Since the publication of this video, federal agencies have expanded the options for extending forbearance.

  • If your mortgage is backed by Fannie Mae or Freddie Mac : You may request up to two additional three-month extensions, up to a maximum of 18 months of total forbearance. But to qualify, you must have received your initial forbearance on or before February 28, 2021. Check with your servicer about the options available.
  • If your mortgage is backed by HUD/FHA , USDA , or VA : You may request up to two additional three-month extensions, for up to a maximum of 18 months of total forbearance. But to qualify, you must have received your initial forbearance on or before June 30, 2020. Check with your servicer about the options available.
  • Other mortgages may also provide similar forbearance options. Whether or not your loan is federally backed, servicers are generally required to discuss relief options with you if you are having financial difficulties.

    Getting through to your servicer could be easier than you think

    Homeowners complained that it was difficult to reach service providers on the phone during the early stages of the pandemic. Currently, a lot of mortgage servicers have improved their ability to respond to clients. It is still advised to be patient, and you might be able to contact your service provider by phone or online. Some service providers may have websites where you can learn about your options and submit a forbearance request.

    Mortgage servicers generally cannot ask for proof of hardship

    You can request forbearance and explain to your servicer that the pandemic is causing you financial hardship in order to do so. The mortgage servicer is not allowed to request documentation of your hardship if your loan is federally backed.

    You do not need to pay for help with forbearance options

    For borrowers requesting forbearance, HUD-approved housing counseling organizations and the counselors they work with offer their services free of charge. Whether the offer is for your mortgage or for other services like assistance with unemployment benefits or credit repair, you should avoid scams, especially those that require upfront fees.

    No need to wait—ask for help now

    If you have a home loan backed by HUD/FHA , USDA , or VA your mortgage servicer is authorized to approve initial COVID hardship forbearance requests until the COVID-19 National Emergency is officially over. Previously the deadline was set for September 30, 2021.

    If your loan is backed by Fannie Mae or Freddie Mac , there is not currently a deadline for requesting an initial COVID hardship forbearance.

    In any case, taking immediate action can assist you in gaining control over your finances.

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    Will my mortgage company let me skip a payment?

    In the U. S. Instead of providing skip-payment mortgages as a standard product, mortgage companies are more likely to offer forbearance or payment deferral options to borrowers who are unable to make a mortgage payment—or unable to immediately pay past-due mortgage payments.

    How can I skip a month on my mortgage?

    Forbearance If you are temporarily unable to make your mortgage payments, you can ask your lender for forbearance. This lowers or even suspends your mortgage payments for up to a year until you are able to resume them.

    What happens if you skip one mortgage payment?

    The typical grace period for late payments on a mortgage is 15 days, but it’s a good idea to double-check with your lender to find out exactly how much late fees will cost you. Your credit score can be impacted once your payment is 30 days overdue, or if you completely forget to make it.

    Does deferring a mortgage payment hurt credit?

    Benefits and Drawbacks of Mortgage Deferment You can postpone paying your debt until the loan’s end. The lender may continue to uphold the loan’s original conditions. Deferment should not hurt your credit score.