When is a Mortgage Considered Delinquent?

Lenders make it very clear the day they expect to receive your monthly mortgage payment. The payment due date is specified in the mortgage documents that you sign at closing. But just in case you need a reminder, lenders typically will mail you payment coupons that specify the mortgage payment due date, the amount due, and date and amount of any late charges should your payment not be posted on time.

Generally mortgage payments are due on the first day of every month. However, this is not always the case. It’s your responsibility to know when payment is due because the consequences of being late with your mortgage payments are severe. You payment is considered late if it is not posted by the due date. It’s very important that you allow ample time for the lender to both receive payment and post it to your account.

Lenders do understand that, for numerous reasons, there may be a delay in receiving and/or posting your mortgage payment. Lender policies vary, but typically you are allowed a 15-day grace period. So even if a holiday or snowstorm delayed delivery of the mail, if you made your payment, the lender should have it within that grace period.

If not, you will automatically be charged a late fee and it will be substantial. If this happens, you must get the regular payment plus the late fee into the lender’s payment system before the next payment due date. If you do, the lender will accept the payment and your account will not be adversely affected. If you don’t, you’re headed for trouble.

Once you are two or more months late paying your mortgage, you must pay the full amount due before your loan is considered current. The only exception is contacting the lender to work out an alternate payment plan.

If your mortgages becomes three or more months overdue, the situation likely will be turned over to the lender’s legal department. At this point, foreclosure proceedings will likely be initiated. Once the situation gets to this stage, your only option may be to pay the entire mortgage balance plus the costs of any legal fees incurred. If you can’t, the risk of losing your home to foreclosure is high.