Two Important “D” Words to Be Aware Of

We keep enforcing the impact the pandemic has had on many people. It seems that although COVID cases are still of great concern, the economy is moving forward in small increments.

I’d like to advise a few key points between a mortgage deferral and a delinquent payment. No matter what is happening in the world, these two issues are very different.


Many banks and lenders have offered deferral programs to help ease the financial burdens caused by the pandemic.  A deferral is when payments have been postponed with prior approval. A deferral does not mean you don’t need to pay. The deferral payments will extend your mortgage length. You will need to replay the principal and the interest. The good news is that the deferral does not affect your credit score.


Being delinquent means that you have missed a mortgage payment. So you have deliberately not paid. The bad news here is that being delinquent can have a negative effect on your credit score and can jeopardize your mortgage and mortgage terms at time of renewal. 

In saying all this, although lenders want their payments, if you are struggling financially, we should talk about how to handle the situation before you go into a delinquent status. Being proactive is always a better option than being reactive.

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