In May 2009, 8.1 percent of all mortgage holders were late on their payments -- a 2.8 percent increase over May 2008, according to NuWire Investor. A late mortgage payment has the potential to destroy your credit for years to come. Eventually, your late mortgage payment leaves your record, but you should become proactive to prevent a late payment in the first place.
Identification
If a lender reports a late payment to the credit bureaus, it will stay on your record for seven years, according to Experian. The clock on the seven-year window starts on the first day the bill becomes overdue, not the first day you receive it. The account, however, will carry a status for ten years that you were previously late on a payment.
Considerations
Lenders usually give borrowers a 15-day grace period where they won't assess penalties, fees or report late payments to the credit rating agencies, according to Lending Tree. If you are late for between 15 and 29 days, the lender probably assesses fees, but does not yet report your payment as late to the credit bureau.
Effects
How long a late mortgage payment will have any noticeable effect on your credit depends on the time it spends in default. Any payment reported 30 to 60 days late won't affect your credit score much after you become current on your loan. Payments that are more than 60 days late increase your risk to lenders appreciably for as long as they remain on your report.
Tip
Contact your lender the moment you think you might not be able to make payment on your mortgage, suggests the Federal Trade Commission. You might even qualify for federal assistance through the Making Home Affordable Modification Program (HAMP) or loan modification if your mortgage payments exceed 31 percent of your income and you received your mortgage before January 1, 2009.
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