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Missing a mortgage payment can feel overwhelming, especially if it’s your first time. Whether it’s due to an unexpected expense, a job loss, or simply a mistake, it’s essential to understand the consequences—and what you can do to protect your home and credit.
In this blog, we’ll break down exactly what happens when you miss a mortgage payment, the timeline of events, how it impacts your credit, and what options you have to fix the situation.
The First Missed Payment: What Happens Right Away?
Mortgage lenders typically allow a 15-day grace period after your due date. During this time, you can still make your payment without any penalty. However, once that grace period ends, most lenders will charge a late fee, usually between 4% and 5% of your monthly payment.
Example:
If your monthly payment is $2,000, your late fee could be around $80–$100.
After that, your lender will report your missed payment to the credit bureaus once it’s 30 days past due, which can significantly damage your credit score.
Timeline of Consequences
Let’s walk through what typically happens month-by-month:
After 30 Days:
- Your missed payment is reported to credit bureaus.
- Your credit score can drop by 50–100 points or more.
- You’ll receive notices or calls from your lender.
After 60 Days:
- You’ll now be behind two payments.
- Your credit takes another hit.
- You may start receiving more frequent collection attempts.
- Your lender might send a demand letter requiring payment.
After 90 Days:
- Now three payments behind, you’re considered in serious default.
- Lenders may begin pre-foreclosure proceedings.
- At this stage, they’ll often send a notice of default and begin legal action if you don’t take steps to resolve the issue.
After 120+ Days:
- Your loan may enter formal foreclosure.
- You risk losing your home.
- Additional legal and administrative fees can be added to your debt.
How a Missed Payment Affects Your Credit
One of the most immediate impacts of missing a mortgage payment is to your credit score. A single 30-day late payment can:
- Stay on your credit report for seven years.
- Lower your score by 50–100 points, depending on your credit history.
- Make it harder to qualify for new credit, refinance your mortgage, or rent a home.
The more recent the missed payment, the bigger the impact on your score. But as time passes—and as you make on-time payments—its effect lessens.
Can One Missed Payment Lead to Foreclosure?
Not right away. Most lenders don’t start foreclosure proceedings after just one missed payment, especially if you contact them and explain your situation. Lenders generally prefer working with homeowners over going through the foreclosure process, which is time-consuming and costly for everyone involved.
But make no mistake: if you ignore the issue and continue missing payments, foreclosure is a very real possibility. That’s why it’s crucial to act fast.
What To Do If You Miss a Mortgage Payment
1. Contact Your Lender Immediately
Don’t wait. As soon as you know you’re going to be late—or if you already missed a payment—call your lender. Many have loss mitigation departments that can help with:
- Payment plans
- Forbearance
- Loan modification
Lenders are more willing to help if you reach out before things escalate.
2. Review Your Budget
Figure out why you missed the payment. Was it a one-time event or an ongoing issue? Adjust your spending and prioritize your mortgage.
3. Consider Financial Assistance
Check if you qualify for local, state, or federal assistance programs—especially if your hardship is tied to job loss, medical expenses, or disaster recovery.
4. Explore Loan Modification or Refinancing
If your current mortgage is no longer affordable, you might be eligible for a loan modification, which adjusts your loan terms, or refinancing, which could lower your monthly payments.
5. Know Your Legal Rights
Each state has different laws regarding foreclosure timelines and homeowner protections. If you’re at risk, consult a housing counselor or attorney familiar with real estate law in your area.
Avoiding Future Missed Payments
Once you’re back on track, you’ll want to avoid missing payments again. Here are some helpful tips:
– Set Up Auto-Pay
Most lenders allow you to schedule payments directly from your bank account, ensuring you never forget.
– Build an Emergency Fund
Try to keep at least 3–6 months of expenses in savings. It creates a buffer in case of unexpected events.
– Refinance at the Right Time
If your income has decreased or interest rates have dropped, refinancing can reduce your monthly obligation.
– Track Due Dates
Use calendar reminders or budgeting apps to stay aware of upcoming payments.
The Bottom Line
Missing a mortgage payment isn’t the end of the world—but it can snowball quickly if ignored. The sooner you act, the more options you’ll have to prevent damage to your credit, avoid foreclosure, and regain control of your finances.
Key Takeaway:
If you’ve missed a payment—or think you might—communicate with your lender right away. Most lenders want to help you stay in your home, not take it away.
