That Late Mortgage Payment, May Not Be Late at All.

Are you feeling the stress of a late mortgage payment?  Don’t panic.  Take a deep breath and read on.

It turns out that what may seem like a late payment might not actually be considered late by your lender. In fact, there are several factors at play that could affect when your payment is due and how it’s processed. So, don’t jump to conclusions just yet – let’s explore this topic further and put your mind at ease.

What to Know: Late Payment Laws

It is important to understand your rights when it comes to mortgage payments. The law provides protections for homeowners who are struggling to make their payments on time. These laws are designed to help you keep your home and avoid foreclosure.

Under the law, your lender must give you written notice at least 45 days before they can start the foreclosure process. This notice is called a “Right to Cure”.  It must explain your right to cure the default by making up all of the past-due payments, plus any late fees and other charges. You will also have to pay any ongoing monthly payments that come due during the 45-day period.

If you are able to cure the default and make all of your payments on time, then your lender cannot begin foreclosure. However, if you still cannot make your payments after the 45-day period, then your lender may start the foreclosure process.

It is important to note that these laws vary from state to state. Be sure to check with an attorney or housing counselor in your area to find out what protections are available to you.

How Mortgage Payments are Affected by Late Payment Laws

When you make a late payment on your mortgage, your lender cannot report the late payment to the credit bureaus until the 31st day of the month the payment was due.  So, if your normal payment is due on the 10th of June, it’s not legally a “late mortgage payment” until July 1st.  This is when the credit bureau(s) may report you late.   This can negatively impact your credit score and make it more difficult to get approved for loans in the future. In some cases, late payments may also result in additional fees being added to your mortgage balance.

Federal law requires that lenders give borrowers a grace period of at least 10 days before reporting a late payment to the credit bureaus. This means that if you make a payment within 10 days of the due date, your lender cannot report the late payment to the credit bureaus.

However, if you do not make a payment within the grace period, your lender may report the late payment to the credit bureau. The length of time that a late payment stays on your credit report depends on the severity of the late payment. Generally, more recent late payments have a greater impact on your credit score than older ones.

If you are experiencing financial trouble, you have options.  If your mortgage payments are too high, there are options available to help you avoid falling behind. You can contact your lender to discuss different repayment options.  Ask about a Forbearance or Loan Modification, often available through government programs like HAMP or HARP.

PRO TIP:  Never call your lender and speak to “Customer Service”, ask for “Loss Mitigation” (scary Dept. name, very helpful people.)

What Happens if You Are Late on a Mortgage Payment?

If you are even one day late on your mortgage payment, your lender may begin charging you a late fee. The late fee is typically a percentage of your monthly mortgage payment, and can add up quickly. If you continue to miss payments, your lender may eventually begin the foreclosure process.

If you are facing financial difficulties and think you may be unable to make your mortgage payment, reach out to your lender as soon as possible. Many lenders are willing to work with borrowers who are having trouble making their payments. You may be able to negotiate a new payment plan or temporarily suspend your payments until you are back on your feet.

What Makes a Mortgage Payment “Late”?

Many homeowners are unaware that their mortgage payment is not considered “late” in the eyes of your credit, until day 31 or the 1st of next month (if current month has 30 days). You will, however, pay a Late Mortgage Payment fee if paid after the due date. A late payment can result in a late fee being assessed, and may also be reported to the credit bureaus, which can negatively impact your credit score.

If you have any questions about when your mortgage payment is due, or if you are unsure of how to make a payment, be sure to contact your mortgage company or servicers for assistance.

How to Avoid Being Late on Your Mortgage Payments

If you’re like most people, you probably dread the thought of being late on your mortgage payments. Fortunately, there are some simple steps you can take to avoid being tardy with your payments.

1. Set up a budget and stick to it. This will help you keep track of your expenses and ensure that you have enough money to make your mortgage payment on time each month.

2. Make your mortgage payment a priority. Once you’ve determined how much you can afford to pay each month, be sure to pay your mortgage first before using that money for other expenses.

3. Automate your payments. Many lenders offer the option to set up automatic monthly payments from your checking or savings account. This can help take the guesswork out of making sure your mortgage payment is made on time each month.

4. Call your lender.  Ask for a 1-month “Forbearance” of the missed payment.  If you know you’re going to have trouble making payments, reach out to your lender as soon as possible and let them know. They may be able to work with you to create a plan that allows you to catch up on missed payments without damaging your credit score too badly.

Alternatives for Dealing With Late Mortgage Payments

If your mortgage payment is late, don’t panic. There may be alternatives for dealing with the situation.

Your lender may be willing to work with you if you’re having trouble making your payments. They may be able to offer a forbearance or repayment plan.

If you’re not able to work with your lender, there are other options available.

You could:

  1.  Try selling your home.  (I have 9 Ways to Sell a House Fast, Even in Ugly Situations.)
  2.  Get a short-term loan from family or friends.
  3.  Borrow or get an advance from your employer.
  4.  Borrow from your pension or 401(k), or as a last resort…
  5. File for bankruptcy.

Whatever option you choose, make sure you understand the consequences before taking action. A late mortgage payment can have serious repercussions, so it’s important to make sure you’re doing what’s best for your financial situation.


A late mortgage payment need not be a cause for worry. With proper understanding of the grace period and other details in your mortgage agreement, you can make sure that you don’t end up paying penalties or extra fees due to mistakes on your part. Make sure to stay informed on the rules regarding payments and always double check with your lender if there are any questions you have about making timely payments. That way, you can keep your financial obligations in order while avoiding additional costs related to late payments.

If All Else Fails…

If payments can’t be made on-time and you feel selling is the best option, I’ll make an offer on your house.  I buy houses of all types from all types.  I have the capability to buy houses in all 50 states, so if you would like some advice on your current situation, let’s chat.  Start a chat on the homepage.  I Buy Houses

This was a HUGE help! Thanks Jay 😉

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