What Happens When You Miss a Mortgage Payment: A Day-by-Day Timeline

Missing a mortgage payment is terrifying. The fear of losing your home can feel paralyzing, and that paralysis — avoiding the phone, not opening the mail — often makes things worse.

Here's the truth: missing one mortgage payment will not cause you to lose your home. The process from first missed payment to foreclosure takes months, sometimes over a year. At every stage, you have options. But those options shrink the longer you wait.

This guide gives you the exact timeline of what happens after a missed payment and the specific actions you can take at each stage.

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The Timeline

Day 1: Payment Due Date

Your mortgage payment is due on the 1st of the month (for almost all mortgages). If you don't pay on the 1st, nothing happens yet.

Your status: On time (technically). Most mortgages don't consider you late until after the grace period.

Days 2–15: Grace Period

Almost every mortgage includes a 15-day grace period. This means your payment isn't considered late until after the 15th of the month.

What happens: Nothing. No late fee. No credit impact. No phone calls. This is built into your mortgage contract specifically to give you a buffer.

What to do: Pay by the 15th and it's as if nothing happened. No harm, no foul.

Important: Some mortgages have a 10-day grace period instead of 15. Check your mortgage note or monthly statement to confirm yours.

Day 16: Late Fee Kicks In

If you haven't paid by the end of the grace period, a late fee is charged. Typically:

• Conventional loans: 5% of the [principal and interest](/blog/amortization-schedule-guide) payment
• FHA loans: 4% of the principal and interest payment

Example: If your P&I payment is $1,800:

• Conventional late fee: $1,800 × 5% = $90
• FHA late fee: $1,800 × 4% = $72

Your credit report: Still not affected. Late payments aren't reported to credit bureaus until you're 30 days past due.

What to do: Pay the full amount plus the late fee as soon as possible. If you can't pay the full amount, pay what you can and call your servicer to explain the situation. Partial payments may be held in a "suspense account" until the full amount is received — ask your servicer about their policy.

Day 30: Credit Reporting Begins

This is the first major consequence. If your payment is 30 days past due (measured from the due date, not the end of the grace period), your servicer reports the delinquency to the three credit bureaus: Equifax, Experian, and TransUnion.

Credit impact:

• A single 30-day late payment can drop your credit score by 60–110 points
• The higher your score was, the bigger the drop (someone with a 780 might drop to 680; someone with a 680 might drop to 620)
• This late payment stays on your credit report for 7 years
• The impact fades over time — after 12–24 months, the score recovery is significant if you stay current

What to do:

1. Call your servicer immediately. Explain why you missed the payment (job loss, medical emergency, divorce, etc.)
2. Ask about hardship options: forbearance, repayment plans, or loan modification
3. Pay if you can. Even at day 30, paying now limits the damage to one 30-day late mark instead of escalating to 60, 90, or worse

Day 36: First Collection Calls

By federal law (Regulation X), your servicer must attempt to make live contact with you by the 36th day of delinquency to discuss your options.

What to expect: Phone calls, possibly a letter. They're required to inform you about loss mitigation options (ways to avoid foreclosure).

What to do: Answer the phone. This is not a collections agency trying to harass you — this is your servicer, and by law they must discuss options that could help you keep your home. Ignoring these calls doesn't make the problem go away; it just means you miss the opportunity to get help early.

Day 45: Written Notice of Options

By the 45th day of delinquency, your servicer must send you a written notice that includes:

• A statement that you're behind on your mortgage
• A description of loss mitigation options available to you
• Contact information for your servicer's loss mitigation department
• Contact information for HUD-approved housing counselors (free help — use it!)

What to do: Read this letter carefully. It's not junk mail. It contains information about programs that could save your home.

Day 60: Second Month Missed — Escalation

You've now missed two payments. The situation gets more serious.

Credit impact: A 60-day late mark is reported. Additional credit score damage.

Financial impact: Another late fee is charged. You now owe two full payments plus two late fees plus any accumulated interest.

Example of what you owe:

• Month 1 payment: $2,000
• Month 1 late fee: $90
• Month 2 payment: $2,000
• Month 2 late fee: $90
• Total to become current: $4,180

What to do:

• If you can pay both months, do it immediately
• If you can't, this is the time to seriously pursue loss mitigation options (see the recovery section below)
• Contact a HUD-approved housing counselor — this is a free service: call 1-800-569-4287 or visit hud.gov/counseling

Day 90: Three Months Behind — [Pre-Foreclosure](/blog/buying-foreclosure-guide) Territory

Missing three payments is a critical threshold. Your servicer's collection efforts intensify, and internal processes for foreclosure may begin.

Credit impact: A 90-day late mark. Severe credit damage. Your score may now be in the 500s if it was previously good.

What happens:

• More urgent collection calls and letters
• Your account may be referred to the servicer's foreclosure department
• However, by federal law, your servicer generally cannot start foreclosure proceedings until you are at least 120 days delinquent

What to do: If you haven't already, this is urgent:

1. Call your servicer's loss mitigation department
2. Call a HUD-approved housing counselor (free)
3. Submit a complete loss mitigation application — this is the formal request for help (forbearance, modification, etc.)

Critical protection: Under federal law (Regulation X), if you submit a complete loss mitigation application more than 37 days before a foreclosure sale, your servicer must review it before proceeding with foreclosure. Submitting early gives you the most protection.

Day 120: Foreclosure Can Legally Begin

After 120 days of delinquency, your servicer can send a Notice of Default (NOD) or initiate foreclosure proceedings, depending on your state's process.

Two types of foreclosure:

Judicial foreclosure (about 22 states): The lender must file a lawsuit in court. You'll be served with legal papers. This process can take 6 months to 2+ years depending on the state.

Non-judicial foreclosure (about 28 states): The lender follows a statutory process that doesn't require court. This is typically faster — 3 to 6 months from notice to sale.

What to do:

• Do NOT ignore legal notices. If you're served with foreclosure papers, you have a right to respond.
• Consult a foreclosure attorney — many offer free initial consultations
• Continue pursuing loss mitigation — even after foreclosure starts, options may still be available
• Respond to your servicer if they reach out — they may still offer [alternatives](/blog/heloc-alternatives)

Months 6–12+: Foreclosure Process

The actual foreclosure process varies enormously by state:

During this period, you're still living in the home (until the foreclosure sale is complete and any redemption period expires).

The Foreclosure Sale

If no resolution is reached, the property is sold at auction. The proceeds go toward paying off the mortgage. If the sale price doesn't cover the full loan balance, the lender may pursue a deficiency judgment in some states — meaning you could still owe money even after losing the home.

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Recovery Options at Every Stage

Option 1: Reinstatement (Pay Everything You Owe)

What it is: Paying all missed payments, late fees, and any foreclosure costs in one lump sum to bring your loan current.

When available: Anytime before the foreclosure sale (in most states).

Best for: [Homeowners](/blog/home-insurance-savings) who had a temporary income disruption and have access to funds (savings, family help, etc.).

Option 2: Forbearance

What it is: Your servicer temporarily reduces or suspends your payments for a set period (typically 3–6 months, sometimes up to 12).

What happens after: You must repay the missed amounts through one of several methods:

• Lump sum at the end of forbearance
• Repayment plan — higher payments for several months until caught up
• Loan modification — missed amounts added to the end of the loan
• Partial claim (FHA loans) — missed amounts become a separate, subordinate lien with no interest

How to get it: Call your servicer and ask for forbearance. You'll need to explain your hardship. Common qualifying hardships: job loss, medical emergency, divorce, natural disaster, death of a co-borrower.

Best for: Temporary hardships where you expect to resume payments within a few months.

Option 3: Loan Modification

What it is: A permanent change to your loan terms to make the payment more affordable. Modifications can include:

• Reducing the interest rate (sometimes significantly)
• Extending the loan term (e.g., from 20 remaining years to 40 years)
• Adding missed payments to the loan balance (capitalizing arrearages)
• In rare cases, reducing the principal balance (principal forgiveness)

How to get it: Apply through your servicer. You'll need to submit:

• Hardship letter explaining why you can't make your current payments
• Proof of income (pay stubs, tax returns, bank statements)
• Monthly budget/expense information
• Completed application forms (your servicer provides these)

Timeline: 30–90 days for a decision, sometimes longer.

Best for: Homeowners with a permanent or long-term reduction in income who want to keep their home.

Option 4: Repayment Plan

What it is: Your servicer spreads your past-due amount over several months of increased payments. You pay your normal payment PLUS an extra amount each month until you're caught up.

Example:

• You're 3 months behind ($6,000 in missed payments)
• Normal payment: $2,000
• Repayment plan: $2,500/month for 12 months ($500 extra goes to arrearages)

Best for: Homeowners who are back to normal income but need time to catch up.

Option 5: [Short Sale](/blog/short-sale-explained)

What it is: Selling your home for less than what you owe on the mortgage, with the lender's approval.

When to consider: When you can't afford the home, the home is worth less than the loan balance (underwater), and you want to avoid foreclosure on your record.

Credit impact: Significant, but generally less damaging than a foreclosure. A short sale stays on your credit report for 7 years but is viewed more favorably by future lenders.

Option 6: Deed in Lieu of Foreclosure

What it is: You voluntarily transfer ownership of your home to the lender, and they cancel the mortgage debt.

When to consider: When you can't sell the home (even as a short sale) and want to avoid the foreclosure process.

Credit impact: Similar to a short sale — damaging but less so than foreclosure.

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What NOT to Do

1. Don't ignore the problem. Every day you wait, your options shrink. The servicer's first call at day 36 is an opportunity, not a threat.

2. Don't stop paying because you're behind. If you can afford partial payments, make them. Some servicers hold partial payments in suspense until a full payment is accumulated — but it shows good faith.

3. Don't pay a "foreclosure rescue" company. Scammers target homeowners in distress. HUD-approved housing counselors are free. Anyone charging you upfront fees to "save your home" is likely a scam.

4. Don't take out high-interest debt to make mortgage payments unless you're confident the hardship is very temporary. Trading mortgage debt for [credit card debt](/blog/heloc-vs-credit-card) at 25% interest usually makes things worse.

5. Don't assume you'll lose your home. Lenders generally prefer to work with you. Foreclosure is expensive for them too. They'd rather modify your loan than foreclose.

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Credit Recovery After a Late Payment

If the damage is already done, here's the recovery timeline:

How to recover faster:

1. Get current and stay current on all payments
2. Keep credit card balances low (under 30% of limits, ideally under 10%)
3. Don't close old credit accounts
4. Don't apply for new credit unnecessarily
5. Consider a goodwill letter to your servicer if the late payment was a one-time event — some servicers will remove a single late mark as a courtesy (it's rare, but worth asking)

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Emergency Resources

HUD-Approved Housing Counselors (Free)

• Phone: 1-800-569-4287
• Website: hud.gov/counseling
• These are government-approved, nonprofit counselors who help you for free

Consumer Financial Protection Bureau (CFPB)

• Website: consumerfinance.gov
• File complaints if your servicer isn't following the law
• Guides and tools for mortgage assistance

Homeowner Assistance Fund (HAF)

• Search "[your state] homeowner assistance fund"
• Federal program providing direct financial assistance to homeowners behind on mortgage payments
• Eligibility and availability vary by state

Legal Aid

• Search "[your state] legal aid" or "[your county] legal aid"
• Free or low-cost legal representation for homeowners facing foreclosure

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The Bottom Line

Missing a mortgage payment is stressful, but it's not the end. Here's the short version:

• Days 1–15: Grace period. Pay now and nothing happens.
• Day 16: Late fee. Still no credit damage.
• Day 30: Credit bureaus notified. Call your servicer today.
• Day 36–45: Servicer must contact you with options. Answer the phone.
• Day 60–90: Situation is serious. Apply for loss mitigation. Call a HUD counselor.
• Day 120+: Foreclosure can begin. But you still have options.

The single most important thing you can do is communicate with your servicer early. The earlier you ask for help, the more options you have. Waiting until you're 90+ days behind cuts off the easiest paths.

If you're reading this because you're worried about an upcoming payment, call your servicer today — before you miss it. Most servicers offer pre-delinquency assistance if you reach out proactively. It's always easier to prevent a problem than to fix one.

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