How to Get a Late Mortgage Payment Removed
Navigate the process of removing a late mortgage payment from your credit report. Improve your financial health with expert guidance.
A late mortgage payment, when reported to credit bureaus, signifies that a payment was not received by the lender within the agreed-upon timeframe, typically exceeding a grace period. This reported delinquency can significantly impact an individual’s credit score, potentially lowering it by a substantial number of points. The presence of a late payment on a credit report can also influence future borrowing opportunities, potentially leading to higher interest rates on new loans or even denials. Understanding how to address and potentially remove such an entry from your credit history is a practical step for managing your financial standing.
Understanding Your Mortgage Payment History
Review your mortgage payment history. Access your monthly mortgage statements, which detail payment due dates and receipt dates. Many lenders offer online portals showing payment history and processing dates. Cross-reference these records with your bank statements to confirm debit dates.
Recall the specific circumstances surrounding the late payment. This might involve a one-time oversight or a temporary financial hardship. Document these events, such as a medical emergency, noting dates and the general nature of the event.
Gather supporting documentation related to these circumstances. This could include proof of payment if you believe it was made on time but incorrectly reported, such as a bank statement. If a hardship caused the delay, relevant documents might include medical bills, layoff notices, or correspondence with your lender acknowledging a financial difficulty. Organized records will be beneficial for subsequent communications.
Requesting Removal from Your Lender
Initiate a goodwill request directly with your mortgage lender. Contact the lender’s customer service, loss mitigation, or credit reporting department, as they are equipped to handle such requests. Many lenders prefer written communication, which provides a clear record of your request.
When composing a goodwill letter, maintain a polite and apologetic tone. The letter should identify your mortgage account number and the specific date of the late payment. Briefly explain the circumstances that led to the late payment, offering a concise explanation without extensive detail. Emphasize your consistent payment history and commitment to timely payments.
State your request for the lender to make a goodwill adjustment and remove the late payment entry from your credit report. Send the letter via certified mail with a return receipt requested to ensure proof of delivery.
After submitting your request, anticipate a response within a few weeks to over a month. If you do not receive a response within 30 days, follow up with the lender by phone or written communication, referencing your initial request.
Disputing Inaccurate Late Payments
Obtain free copies of your credit reports from Equifax, Experian, and TransUnion via AnnualCreditReport.com. Review each report to identify any discrepancies regarding your mortgage payment history.
Look for specific details that indicate an inaccuracy, such as a payment reported late when your records show it was paid on time, or an incorrect date of delinquency. Compare the reported late payment date on your credit report with your bank statements or mortgage servicer records. Any mismatch suggests a potential error that warrants a dispute.
Gather specific evidence to support your claim of inaccuracy. This might include bank statements showing the payment cleared on or before the due date, cancelled checks, or confirmation emails from your lender. These documents serve as proof that the information reported is incorrect. Organize these documents, highlighting the relevant information.
To file a dispute, do so online through each credit bureau’s website, or by mail. When submitting your dispute, state the inaccurate item and provide all supporting documentation. The credit bureaus are required to investigate your dispute within 30 days, extending to 45 days if additional information is provided. They will contact the mortgage lender to verify the information, and if the inaccuracy is confirmed, the item will be removed or corrected.
Monitoring Your Credit Report
After submitting a goodwill request or filing a dispute, monitor your credit report to verify the outcome. Regularly access your credit reports from all three major bureaus to confirm whether the late payment entry has been successfully removed or updated. This ensures that any corrections are accurately reflected across all reporting agencies.
If the late payment has not been removed after 30 to 60 days following your request or dispute, further action is warranted. For a goodwill request, re-contact your lender, referencing your previous communication and inquiring about the status. If a credit bureau dispute doesn’t remove the item, re-dispute it, possibly providing additional evidence or clarifying details from your original submission. Maintain records of all correspondence and dispute identification numbers for these follow-up actions.