What Happens When You Miss a Mortgage Payment?

Life happens, and sometimes that means you might miss a mortgage payment. If you’re in that situation, you’re probably wondering what comes next and how this impacts your credit.

The good news? Missing one payment doesn’t automatically mean you’re going to lose your home. Let’s walk through exactly what happens if you miss a mortgage payment and what you can do to get back on track.

If you miss a mortgage payment, you’re not alone. Many homeowners experience this at some point, and there are built-in timelines and options designed to help you recover, especially if you act quickly! 

Many borrowers assume there’s a standard grace period, but every lender has a different policy so this timeline can vary. The original lender or current loan servicer can provide more information on the policy that applies to your loan.  

Some servicers have a 10-15 day grace period after the due date before late fees apply. The first step is usually checking your loan documents or recent mortgage statement to confirm your exact timing and late fee structure. If your loan is serviced by RWM Home Loans, you can visit our website for more information and customer service contact information.   

If you make your mortgage payments to another servicer, you can find their contact information on your most recent mortgage statement.

If the grace period passes and you still haven’t paid, your lender will likely charge a late fee. 

While that’s not ideal: 

• It’s usually a small percentage of your payment 
• It does not immediately impact your credit 

Once your payment is more than 30 days late, the credit bureaus will be notified. This is when missing a payment can start to affect your credit score and potentially impact your ability to qualify for loans and other credit applications in the future. Acting quickly around this point can help limit the overall impact. 

If you continue to miss payments (around 90 days), your loan is considered in default. 

At this stage:

Even at this stage, there are still options available to help you catch up and work toward bringing the loan current. 

After several months of missed payments, your lender may begin the foreclosure process. However, this doesn’t happen overnight, and it’s usually considered a last resort. Most lenders would prefer to work with you on a solution rather than move forward with foreclosure, which is why early communication is so important. Be sure to reach out well in advance if you are experiencing any financial difficulty. One of our loan officers would be happy to proactively discuss your situation and explore solutions. 

If you’ve already missed a mortgage payment, or think you might, the most important thing you can do is take action early. Reaching out to your mortgage servicer or loan officer may feel uncomfortable, but it can open the door to helpful options like payment plans, temporary pauses, or other solutions tailored to your situation. 

It also helps to take a close look at your finances and create a plan for catching up, even if it takes a little time. The key is to stay proactive, as addressing it early gives you more flexibility and control. 

The Bottom Line 

While it can be stressful, most loans have some flexibility built in, and the sooner you respond, the more options you typically have to get back on track and avoid long-term impact. 

If you’re unsure what your specific timeline looks like, or you’ve already missed a payment, the best next step is to reach out to our team. We can help you review your situation, explain what applies to your loan, and walk you through potential solutions so you’re not figuring it out alone!