Late Making a Mortgage Payment?

It’s extremely important to pay your mortgage on time every month. But sometimes, things don’t work out that way, and you may not have the cash needed to pay your mortgage when it’s due.

So what, exactly, happens if you’re late making a mortgage payment?

A recent article from realtor.com answered common questions around what happens if you’re late paying your mortgage, including:

Will you get hit with a late fee? While all loans offer a grace period to help borrowers avoid late fees — which are typically between 7 and 15 days — if you submit your payment after the grace period ends, you’ll likely be hit with a late fee, which is usually anywhere between 4% and 5% of the amount of the overdue payment.

Will a late mortgage payment impact your credit score? Generally, mortgage lenders won’t report a late payment until it’s 60 days past due. So, as long as you pay your missed mortgage payment before that two month mark, it shouldn’t impact your credit. However, if your payment goes beyond 60 days past due, and it gets reported to the credit bureaus, it could cause your credit score to drop anywhere between 60 and 110 points, depending on your prior credit history.

Will the bank attempt to foreclose on your home after a missed payment? Your lender won’t go after your home after a single mortgage payment. However, that changes if you fail to make your payment for three months, as your mortgage is considered in default when your payment is more than 90 days past due. If you get to that point, the bank will send you a letter that your mortgage is in default, and generally give you another 90 days to repay the missed payment. If you still can’t cover the missed payment, the lender will likely start the foreclosure process.

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