4 Major Consequences to Late Mortgage Payments in 2024

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Even though the information on this web page is provided by a qualified industry expert, it should not be considered as legal, tax, financial or investment advice. Since every individual’s situation is unique, a qualified professional should be consulted before making financial decisions.


What Happens if You Pay Your Mortgage Late?

Keeping up with mortgage payments can be difficult for some individuals. However, paying late can have substantial consequences.

Learn what those consequences are and how to avoid or fix them. Different reasons make paying home mortgage payments difficult for individuals.

For example, going through bankruptcy or job loss can create tremendous hardship in paying mortgage dues on time, not to mention, caused stress.

Unfortunately, consequences of paying your dues late can be disastrous.


4 Consequences Associated With Late Mortgage Payments


1 A Hurt Credit Score

Missing even just one mortgage payment can hurt your credit around 50 points. Unfortunately, the dip in credit may affect your eligibility to apply for credit cards, insurance premiums, and even the chances of employment.

If you’re already behind, it’s time to act before more consequences add up. Check the next header to decide on the best option for tackling your difficulty in paying mortgage dues.


2 Additional Fees for Paying Late

Fortunately and not-so-fortunately, your lender may have a grace period where you can pay overdue mortgage payments. The downside to this is that you’ll likely be hit with late fees.

Late fees are meant to punish you, but they aren’t doable for those already struggling monetarily. The hope from lenders is that you’re intimidated by the consequences that may arise and will pay your payments on time.

However, if you can’t keep up to begin with, it’s time to find a solution, not back out.


3 Potential Foreclosure of Your Home

The primary situation every homeowner wants to avoid is foreclosure, the ultimate consequence of several overdue mortgage payments.

Nobody wants to lose their home in an already stressful situation. You can fortunately avoid foreclosure before it occurs, that is, if you take action once trouble with mortgage payments arises.

Once foreclosure officially happens, there are several consequences around the corner, as you will see next.


4 If Foreclosure Occurs, Expect it to Be on Your Record, Among other Consequences

Several overdue payments later, your risk of foreclosure is heightened, and you may lose you home. If foreclosure occurs, and your home is bidded off, more consequences will occur.

Foreclosure will be on your record preventing you from purchasing another home for several years. Additionally, your credit will be hurt more with a foreclosure than just missing an overdue payment or two on your mortgage.

Once your home is bidded off, any payments that remain will still have to be paid by you if the highest bid was lower than the amount of payments you owed to your lender.

These reasons are why it’s stressed that one takes difficulty paying mortgage payments seriously, that is, before foreclosure and other consequences happen.


6 Solutions When Having Trouble Paying Mortgage Payments


1 Contact Your Mortgage Lender to Work Out a Payment Plan

Your best first troubled mortgage solution is to ask your mortgage lender if you can opt for a plan to pay out your outstanding mortgage dues.

If they decline but you find that your mortgage lender has violated the bill of rights or housing laws, you may be able to file a lawsuit for extra time to pay.


2 Opt for a Mortgage Assistance Program

A mortgage assistance program, if you are approved, can help you find short- or long-term relief from home mortgage expenses.

Your mortgage may be reduced or paid for you to allow for a lighter load. Check different assistance programs for qualifications.


3 Get Mortgage Counseling

If you are in some serious need of mortgage advice, free mortgage counseling may be your go-to method for tackling your current issue.

This type of counseling will guide you through difficulty with mortgage payments and ease your stress as the solutions become clear to you.


4 File Bankruptcy

If eligible to file bankruptcy, this will temporarily halt your mortgage dues to give you extra time to pay up.

This time period may be the very timeline you need to get back on track to paying your mortgage on time. (If not, then another solution will better benefit you.)


5 Sell Your Home Quick with House Cashin

If you find that your mortgage payments are too much to handle, it may be time to find a new living situation, one that is more affordable.

The benefit in selling a home you can’t afford is that you avoid further stresses, late mortgage fees, bad credit, and potential foreclosure.

Additionally, selling before foreclosure helps avoid restrictions on when you can purchase your next property (as what happens with foreclosure).

In the state of Texas, House Cashin can have your property sold often sooner than a week. No initial fees or down payments necessary, and we buy houses as is!

You can request an obligation-free cash offer from House Cashin at any time..

House Cashin will ensure you leave with just cash once everything is processed. Then, you can find a new living situation without fear of foreclosure or the title of foreclosure on record.


6 In Danger of Foreclosure? Opt for a Deed-in-Lieu

If foreclosure is already a stone’s throw away, voluntarily give up your property with a deed-in-lieu. This will transfer your property into the bank’s name with less hurt on your credit and less consequences than foreclosure.

If your lender agrees to this process, you’ll have your outstanding mortgage payments forgiven in surrender for your property. Don’t give up just yet!

There’s quite a lot you can do when one has difficulty with late mortgage fees or even risk of foreclosure. It’s time to act fast, no time to waste.



Paying bills and keeping up with mortgage payments is not simple for all. However, when you notice it getting more difficult to pay your mortgage dues, it’s time to act.

Missing one mortgage payment may hurt your credit, not to mention that you may be paying late fees. Even worse, getting in the habit of missing property dues can lead to a lifetime of trouble.

Ask your lender for a payment plan, find a mortgage assistance program, file bankruptcy, sell your home with House Cashin, or even file for a deed-in-lieu.

The idea is to avoid foreclosure before it happens. Otherwise, higher consequences will occur.

About the Author
Brian Robbins | Real Estate Investor

With over 20+ years of experience in real estate investment and renovation, Brian Robbins brings extensive knowledge and innovative solutions to the HouseCashin team. Over the years Brian has been involved in over 300 transactions of income producing properties across the US. Along with his passion for real estate, Brian brings with him a deep understanding of real estate risks and financing.

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