Refinance skip a payment advice needed

9 Replies

Hello everybody. I’m at the finish line with my refinance and it’s suppose to close on Saturday July 27th. The company is saying that it will fund on August 1st. It Was suppose to close on the 26th and fund on the 31st but they had to push it forward a day. Now that it’s going to fund on the 1st it puts my July payment exactly 31 days late. Do you think it’s possible that if I close as planned I get put into collections from the first mortgages last payment and have my credit trashed ? Seems to me that will be the case. Thoughts ? 

Originally posted by @John Chapman:

Hello everybody. I’m at the finish line with my refinance and it’s suppose to close on Saturday July 27th. The company is saying that it will fund on August 1st. It Was suppose to close on the 26th and fund on the 31st but they had to push it forward a day. Now that it’s going to fund on the 1st it puts my July payment exactly 31 days late. Do you think it’s possible that if I close as planned I get put into collections from the first mortgages last payment and have my credit trashed ? Seems to me that will be the case. Thoughts ? 

 Pay your mortgage today!!!  Don't depend on a refinance to pay it ever.

Sucks to give up almost 4k ! I was thinking I could pay it via debit card on the 30th if it doesn’t go through on time. I’m already hammered with the late fee as it is. 

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Originally posted by @John Chapman:

Sucks to give up almost 4k ! I was thinking I could pay it via debit card on the 30th if it doesn’t go through on time. I’m already hammered with the late fee as it is. 

 If your mortgage payment is late for the month of July it will kill your deal and your credit score.  It's not worth it and talk to your Loan Officer.  Since the loan is funding in August your first payment should be Oct 1st.  Check with your LO though to be sure.

Ok. My closing is on Saturday. Is it safe to assume that if my first payment isn’t until October 1st that july has to be paid and if it’s September 1st that the original mortgage holder is satisfied ? 

Originally posted by @John Chapman:

Ok. My closing is on Saturday. Is it safe to assume that if my first payment isn’t until October 1st that july has to be paid and if it’s September 1st that the original mortgage holder is satisfied ? 

 Don't assume anything.  Make the phone call.

- Pay your mortgage now

-Ask your LO when your first payment will be

Good Luck.

Who the F told you to skip your July 1 payment for a refi expected to close in late July????!!!!

Call the current loan servicer tomorrow at 9 AM and get that payment + the 15 day late fee made and processed ASAP. As in, tomorrow. I don't care if you have to spend $25 to instantly wire it, or what. 

If that was your LO's idea, he or she is lucky they don't work for me!

For context, you were never going to "skip" a mortgage payment. You can defer a mortgage payment or two when you refi. But you aren't "skipping" anything, interest is accruing every single day. And it all nets out such that one way or another you are paying interest on the outstanding balance for every. Single. Day.

You almost always get a refund check or two in the mail when you close a mortgage, purchase or refi. The "worst case" scenario if your payment goes through tomorrow (or if you sent it in on the first) and a bunch of rosy perfect stuff happens, is that your refund check will be slightly larger & you might be out those funds temporarily while the payment is being processed. 

Ok the mortgage payment is being made as we speak. However I am going to push the closing to August 1st so we skip August and September. It’s a bit confusing but I think that will do the trick to skip 2 payments. I understand there’s no such thing as a free lunch but money’s a little tight right now and to have the cash to close covered by two deferred payments would help a lot. Thanks for all the help guys. I’ll post back to let you know how I make out. 

Ok so my loan officer sent me an email yesterday stating that I’d be skipping August and September and yet today at the signing I start September 1st. Wtf. Are these guys bozos or is it normal for something like that to change last minute ? I’m getting ready to fire these idiots. 

Originally posted by @Chris Mason:

Who the F told you to skip your July 1 payment for a refi expected to close in late July????!!!!

Call the current loan servicer tomorrow at 9 AM and get that payment + the 15 day late fee made and processed ASAP. As in, tomorrow. I don't care if you have to spend $25 to instantly wire it, or what. 

If that was your LO's idea, he or she is lucky they don't work for me!

For context, you were never going to "skip" a mortgage payment. You can defer a mortgage payment or two when you refi. But you aren't "skipping" anything, interest is accruing every single day. And it all nets out such that one way or another you are paying interest on the outstanding balance for every. Single. Day.

You almost always get a refund check or two in the mail when you close a mortgage, purchase or refi. The "worst case" scenario if your payment goes through tomorrow (or if you sent it in on the first) and a bunch of rosy perfect stuff happens, is that your refund check will be slightly larger & you might be out those funds temporarily while the payment is being processed. 

 @Chris Mason that got a laugh out of me. Lol. 

Sometimes I scratch my head and wonder how some of our brethren are advising their customers.