A mortgage is secured against your home, so missing payments is not something you want to do. Below are just a couple of the consequences if you fail to make your monthly payment.
Struggles with other debts
Naturally, anyone who struggles to pay their mortgage payments is undoubtedly going to experience financial hardship. This could range from having to cut back on certain luxuries that you feel you can live without to ending up with no money left to pay your priority bills.
For most, your house comes first so in most situations people have to forgo certain bills in order to keep their home, often leaving them no choice but to take out loans, overdrafts or a credit card just to get them to the end of each month. This can cause people to fall into a downward spiral of owing more money than they have coming in.
Problems with personal relationships
It is well known that financial troubles often cause the break down of relationship. If you co-own a home with your partner or a family member, financial struggles can lead to repeat arguments. This will often result in the topic becoming taboo and the problems escalating.
A survey released by SunTrust Bank showed that 35% of participants said that finances were the main reason they were suffering strains in their relationship. Having to cut out luxuries to afford your mortgage repayments can also lead to spending less time with the people you love because you simply cannot afford to.
The threat of losing your home
When a homeowner defaults on their mortgage payment it could signal to the lender that this individual is unable to repay their debts and as such they will need to take possession of the property at some point in the future.