How Many Days Late Can You Be on Your Mortgage?

Mortgage payments are a significant financial commitment for homeowners. While typically due on a specific date, established periods exist for payments not made by their initial due date. Understanding these timeframes and their implications is important for managing a mortgage effectively.

Understanding Your Grace Period

A mortgage grace period is a set duration immediately following the payment due date. During this time, a borrower can submit payment without incurring a late fee or having it reported as late to credit bureaus. Grace periods commonly range from 10 to 15 days, though the exact length varies by loan agreement and lender. For example, a payment due on the first with a 15-day grace period would extend until the 16th of that month.

Payments made within this grace period are considered on time for credit reporting, meaning they will not negatively impact a borrower’s credit score. Once the grace period concludes, the payment is officially late. The lender will typically assess a late fee, which can be a flat amount or a percentage, often ranging from 3% to 6% of the monthly payment. Borrowers should consult their specific mortgage promissory note or loan servicing agreement for precise terms and fees.

Consequences of Missed Payments

Once a mortgage payment moves beyond the initial grace period, a series of escalating consequences can begin.

If the payment remains unpaid and becomes 30 days past due, the lender will typically report this delinquency to the three major credit bureaus: Experian, Equifax, and TransUnion. This action can significantly harm the borrower’s credit score, as payment history accounts for a substantial portion of the credit score calculation. Beyond the credit impact, lenders usually begin initial communication efforts, such as phone calls and letters, to address the missed payment.

As the delinquency extends to 60 days late, the communication from the lender intensifies. At this stage, the negative impact on the borrower’s credit score deepens, as a 60-day late payment is viewed as more serious than a 30-day delinquency. Lenders may also start to mention or offer potential assistance programs or loss mitigation options, aiming to help the borrower avoid further default. Federal regulations require mortgage servicers to attempt live contact with borrowers by the 36th day of delinquency to discuss options.

Reaching 90 days late marks a more severe stage of delinquency. The lender’s actions become more formal, often involving the issuance of a Notice of Intent to Accelerate or similar formal notices. This notice indicates that the entire outstanding loan balance could be declared immediately due and payable, signaling a serious step towards potential foreclosure. The credit impact at this point is severe, potentially leading to substantial credit score reductions and remaining on the credit report for up to seven years.

Communicating with Your Lender

If financial difficulties arise and a mortgage payment is, or is anticipated to be, missed, contacting the mortgage servicer promptly is important. Lenders generally prefer to work with borrowers to prevent a loan from going into default. Early communication can provide more options for resolution.

When contacting the lender, being open and honest about the financial situation is important. The lender can then discuss various possibilities, such as repayment plans, forbearance, or loan modification, which are designed to help borrowers manage their payments during hardship. While the specifics of these programs are discussed with the lender, they represent avenues for potential relief.

Before initiating contact, it is helpful to have relevant information readily available. This typically includes the loan number, details regarding income and expenses, and a clear explanation of the hardship causing the payment difficulty. Keeping thorough records of all communications, including dates, names of representatives, and summaries of discussions, can be beneficial throughout this process.