When Does a Late Mortgage Payment Get Reported?

When Is a Mortgage Payment Considered Late?

Technically, a mortgage payment is late when it is not paid by the due date. However, you may have some leeway before any fees or impact your credit.

Mortgage lenders typically have a grace period, which allows you to make your mortgage payment up to 15 days past its official due date. If a payment is submitted past this point, it's considered late and will incur a penalty.

Example: If your payment was due March 1, and you submitted it March 13, you would be within the grace period window. If you submitted the payment March 16, though, you'd be charged a late fee.

Once a payment is 30 days past due, lenders will report it to the three major credit bureaus—Experian, TransUnion, and Equifax. At this point, it is officially considered delinquent and will show up on your credit reports.

Learn more: How Many Mortgage Payments Can You Miss Before Foreclosure?

What Is a Mortgage Payment Grace Period?

In the mortgage world, a grace period is a short duration of time in which a lender will accept payments beyond their due date without penalty. The exact length can vary by lender, but mortgage payment grace periods are typically up to 15 days long. After this point, you can be charged a late fee.

Be sure to check your loan documents to determine what the exact grace period is for your mortgage loan.

When Do Mortgage Companies Report Late Payments?

Mortgage companies report late payments to credit bureaus once they are 30 days past their due date. At this point, a past-due entry will appear on your credit reports, which could impact your credit scores and ability to secure other forms of credit.

If you miss a second payment on your loan, lenders will then report this to credit bureaus and a 60-day past-due notice will be added to your credit report. This can have further consequences for your credit and finances. Once you hit three missed payments and are 90 days past due, your lender will likely send a notice of default, and you will enter the pre-foreclosure process.

Learn more: What Is Pre-Foreclosure?

How Long Do Late Mortgage Payments Stay on Credit Reports?

A late mortgage payment will go on your credit report and can impact your credit for seven years from the date of your first missed payment. It can impact your credit score—particularly if you've never had a late payment before. Once you've hit the seven-year mark, the missed payment will fall off your credit report.

Missed payments that turn into 60-day, 90-day or 120-day late payments will also drop off your credit report seven years from the original missed payment date.

Learn more: Can One 30-Day Late Payment Hurt Your Credit?

How to Get Help With Mortgage Payments

It's best to avoid a late mortgage payment if at all possible, and if you do miss a payment, to get current on your loan as quickly as possible to prevent further credit damage or foreclosure.

If you think you may have trouble making a mortgage payment, you should:

• Talk to your lender. As soon as you think you may miss a payment, contact your mortgage lender. They may allow you to enter forbearance, which temporarily reduces or pauses your payments, or modify your loan to give you more amenable terms.
• Contact a housing counselor. A local housing counselor may be able to help you determine your best path forward. You can find ones approved by the U.S. Department of Housing and Urban Development at HUDHousingCounselors.com.
• Get creative with your finances. Finding another source of income or taking on more hours may help you increase cash flow and get current on your loan. You can also think about selling assets or borrowing money from a friend or family member.
• Talk to a pro. If you're having trouble with more than just your mortgage, talking to a credit counselor, exploring debt consolidation options or getting on a debt management plan could be options to explore. These can help you work toward getting your finances in order.
• Give up your home. While not ideal, a short sale, deed in lieu of foreclosure or even selling your home may be a good option if you're having trouble making payments. Renting out your home and living elsewhere could also help your financial situation.

In some cases, you may also need to explore bankruptcy. While this does have long-lasting effects on your credit, it can also stop foreclosure—at least temporarily, if you're facing it.

Learn more: Options if You Can't Afford Your Mortgage Payments

The Bottom Line

Late mortgage payments can have a serious impact on your credit and long-term finances. If you've missed a payment, monitor the damage with free credit monitoring from Experian, and take steps to get current on your loan as soon as possible. Foreclosure can happen as early as four missed payments, so time is of the essence.