What Happens If You Miss a Mortgage Payment? | Chase (2024)

FAQs

What happens if you accidentally miss a mortgage payment? ›

Foreclosure processes generally begin 3-6 months after the first missed payment, with late fees charged after 10-15 days. Federal law usually requires a homeowner to be more than 120 days overdue before starting foreclosure, but earlier action can occur if there's no communication with the lender.

What are the consequences of missing a mortgage payment? Your lender will typically report your missed mortgage payment to a credit bureau after about 30 days. If you're only a couple of days late, there's a chance the missed payment won't have an impact on your score. You will, however, likely be charged late fees.

Your Credit Score Take A Hit

If your credit is closer to 680, it'll lose about 60 to 80 points after one missed mortgage payment. After your payment is late by 60, 90, 120, or more, your score will continue to drop, although it'll be by a lesser amount than the initial 30-day late payment.

It's usually the first day of the month, but can vary depending on your agreement. A mortgage payment is considered late if it's after this set date, but most lenders give customers a 'grace period' to pay the mortgage before late fees are applied.

Your mortgage lender will likely report your late payment to the three major credit bureaus after 30 days past due, and your credit score will take a hit. Even one late payment can negatively affect your credit score for up to three years, according to FICO.

In many cases, mortgage payments are due on the first of the month, often followed by a grace period to give you some room before incurring a late fee. The length of this grace period varies by lender, but it's usually around 15 days.

Rest assured, one missed mortgage payment won't lead to foreclosure. At least two missed payments will have to occur for foreclosure even to be a viable option. Often, lenders won't initiate the foreclosure until you're more than 90 days behind on your payments.

Skip-A-Payment Mortgage Option

You can skip up to four consecutive weekly payments, up to two consecutive bi-weekly or semi-monthly payments, or one monthly payment. You will still be responsible for paying your usual insurance premiums and property tax installments, where applicable.

The amount of time in the mortgage payment grace period varies by lender, but it's usually 15 days or 2 weeks. If you don't make your payment within this timeframe, you could be charged a late payment fee (which can be a set amount or based on your principal and interest).

Can you skip a mortgage payment and add it to the end? ›

Paused payments, paid back at the end of the mortgage

Your servicer lets you pause payments for a specified number of months. Then, the amount is repaid either by adding more payments at the end of your mortgage loan, or by taking out a new loan.

If you're behind on mortgage payments and need help, there are several options available. Depending on the specifics of your situation, your options may include forbearance, loan modification or a repayment plan. Alternatively, you might consider refinancing, reducing your expenses or applying for assistance funds.

Mortgages have a grace period (typically 15 days) during which you can make your mortgage payment without incurring a late penalty. Grace periods can help you avoid late fees that often range from 3% to 6% of your monthly mortgage payment amount.

The recovery time can also depend on the event. It may take a few months to recover from a hard inquiry, a few months (or years) to recover from a 30-day late payment, and much longer to recover from a 90-day late payment or other major negative mark (such as a foreclosure).

Most mortgages are due on the 1st of the month. But you can usually make your home loan payment by the 15th of the month without incurring any fees, or being subjected to negative reporting on your credit history. This flexibility is called a grace period.

If you have an eligible home loan and are facing a legitimate period of leave from the workforce, you can apply for a Repayment Pause. For example, you may want a Repayment Pause during maternity leave or for travel. It's also possible to apply for a Repayment Pause if you're ahead of your home loan repayment schedule.