Many times in life things happen beyond our control. The same happens with our finances all the time. Many people would love to pay their mortgage on time and never have a late mortgage payment but it can happen to anyone at anytime. Knowing how a late payment affects you and your credit rating is important.
Being just a few days late will not have any adverse affects on your credit and will usually just result in a late fee having to be paid. However once you pass the 30 day mark trouble begins. Technically mortgage companies can start foreclosure as soon as you have one 30 day late mortgage payment, however this rarely happens until you are 120 days past due.
A thirty day late payment will drop your credit score on average 50-100 points and make refinancing with a low rate conforming mortgage very difficult for the next 24 months. So if you must be late with any bills make sure that the mortgage gets pad first before anything else.
If you find your self with a thirty day late mortgage payment you will need to contact the lender and make arrangements to get caught up and current. failure to do so may result in a rolling late. What this means is that you had a thirty day late payment and never made it. You basically skipped a month, so until you pay that payment and bring the account current your mortgage lender will report a late mortgage payment every month to the credit reporting agencies. This will further damage your credit and compound the problem!
If you know for sure hat you are going to be late with your mortgage the the first thing you should do is call your mortgage lender. Many mortgage lenders understand bad things happen to good people and will usually work out a payment plan with you so you can get current and keep your good credit rating.
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