How to Defer Your Missed Mortgage Payments and Save Your House

What would you do if you can’t pay your mortgage for one or several months for whatever reason?

Banks understand that no matter how much you expect to pay for your mortgage, there will still be conditions that may momentarily impede your ability to pay on time for your mortgage. For this purpose, the option of deferring one or more missed payments to otherwise responsible borrowers will often be extended.

A deferred payment agreement is essentially an arrangement between you and your bank that allows one or more mortgage payments to be delayed until the end of the loan.

What are Deferred Payments?

In real estate, if the borrower has temporary financial difficulties and qualifies for deferred payment plans, one or more mortgage payments can be deferred.

Some of the circumstances in which a mortgage payment deferral could be appropriate include illness and job loss, among other emergency situations.

No commitments are eliminated by a deferred payment plan. It simply postpones the due date, usually to the end of the mortgage term.

When to Take Action

Ideally, as soon as he knows he will not be able to afford the next mortgage payment, a borrower can contact his bank. Letting yourself go into default could endanger your chances of qualifying for a deferred mortgage payment plan and put you at risk of foreclosure.

How will a mortgage payment be deferred?

You should take the following steps to get your monthly payment postponed until you have found out that it would be difficult for you to make the next mortgage payment.

Ask for assistance

The earlier you contact your lender, the easier it is for you, as you will have plenty of time to consider your fate and begin preparing for it.

The method of applying for a deferred payment plan differs dramatically from bank to bank. There are clear application forms and strict guidelines in place at certain financial institutions. There are more informal processes for other banks and it may initially seem like they do not offer this option. In both cases, to discuss what choices are open to you and whether a deferral payment will be a feasible solution, you will have to be willing to speak to multiple individuals in your bank or mortgage business.

Demonstrate the financial difficulty

You will have to prove to the lender that you are facing a financial burden that hinders your ability to make a monthly mortgage payment to become eligible for any payment deferral.

Your lender will most likely require you to draft a hardship letter; a document describing the condition causing your inability to pay.

Be ready to provide supporting documentation such as bank statements, pay stubs, income statements, and other records that can show objectively that your current financial condition cannot allow you to make your monthly mortgage payment.

You will also have to give a signed statement to the lender to convince them that you will work diligently to rapidly address your financial problem.

Consistently interact

You must regularly interact with your bank or mortgage company during the process. When things change for better or for worse, the sooner and more you interact, the more likely your lender would be able to continue working with you.

In most situations, mortgage institutions will be willing to help you preserve your home as long as you are truthful and there is ample assurance that you will be back on your feet soon. While it might be difficult to adjust the terms of your mortgage, any move that can boost your chances of preserving your home is worth it.

Not all mortgage companies or banks allow payments to be postponed. In addition, even though your lender has this option, it may not be the only option on the table, and your case may not actually be affected. Therefore, this is a dilemma that you are going to have to resolve with your lender.


A deferred payment plan enables you to delay your mortgage payments partly or entirely.

An easy and viable solution to foreclosure is to ask for a payment deferral plan.

To get approved, it is necessary to communicate with your lender early and often.

To prove your financial distress, be prepared to have evidence.

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