If you've ever tried to make a payment without enough money in your account, you may have encountered a nonsufficient funds (NSF) fee. These charges can be frustrating, especially when you're already navigating tight financial circumstances. At Shellpoint, we want to help you avoid unnecessary costs and stay on track with your mortgage.
An NSF fee occurs when a payment—whether by check, online transfer or automatic draft—is declined due to a lack of available funds in your bank account. For instance, if your mortgage payment is $1,000 but your account only holds $500, the transaction won’t go through. When this happens, your payment remains unpaid, and a fee is assessed to cover the processing of the failed attempt.
Shellpoint may charge up to $50 for an NSF incident, though the exact amount can vary depending on your state’s regulations. Additionally, your bank might impose its own fee unless you’ve opted into overdraft protection.
Beyond the inconvenience, repeated NSF fees and missed payments can negatively affect your credit profile. Staying current on your mortgage is critical for maintaining financial health.
Common Reasons for NSF Charges
Even with the best intentions, NSF fees can happen. Here are a few typical causes:
- Mail delays: If you're sending checks by post, timing can be unpredictable. A delay might mean your account balance dips before the payment arrives and is processed.
- Unexpected timing: A recent purchase or a delayed paycheck could impact your available funds at the wrong moment.
- Incorrect banking details: Mistyped routing or account numbers, especially when setting up auto-pay, can cause payment failures.
- Invalid checks: Payments from closed accounts or improperly endorsed checks will be rejected.
- Inoperable accounts: Attempting payment from accounts that have been closed or frozen will result in a fee.
If you're facing financial hardship and struggling to make payments, Shellpoint offers alternative payment plans. Log into your account and use the online chat feature to speak with a representative. Be sure to have your loan number ready.
Tips to Avoid NSF Fees
Here are some practical ways to reduce the risk of NSF charges:
- Keep tabs on your balance: Regularly check your account to ensure you have enough funds to cover upcoming bills.
- Verify your payment details: Double-check your bank account and routing numbers when setting up payments.
- Build a budget: A monthly spending plan can help you prioritize essential expenses like your mortgage payment.
- Talk to your bank: Many banks offer tools like overdraft protection or linked accounts to help prevent shortfalls.
- Set up alerts: Notifications from your bank via email or text can help you monitor your account in real time.
- Align payments with payday: Scheduling your mortgage draft shortly after your paycheck hits so you are more likely to have sufficient funds.
Paying attention to your finances doesn’t just help you avoid fees—it helps you stay in control. Shellpoint is here to support your homeownership journey.