What happens if your mortgage payment is late 

In this article: 

• When is a mortgage payment considered late? 
• When late payments are reported to credit bureaus 
• How late payments affect your mortgage account 
• What happens if you miss more than one payment 

Life happens, and sometimes a mortgage payment may be missed or delayed. Whether you overlooked a due date, experienced a financial setback or had an unexpected emergency, knowing what to expect can help you take the right steps quickly and protect your account. Understanding how late payments are handled, what fees or notices you may receive and when credit reporting begins can also help you avoid long-term impacts. 

This guide explains what happens when a mortgage payment is late and how Desert Financial can support you. 

When is a mortgage payment considered late? 

Your mortgage payment has a due date each month, but most home loans include a grace period. A typical grace period is 15 days, though it may vary based on your loan terms. Check your mortgage documents for your specific grace period.

During the grace period: 

• Your payment will not be considered late.
• No late fee will be charged.
• No credit reporting occurs.

Once the grace period ends, the payment is officially late. 

What happens after the grace period ends 

If the payment is not received by the end of the grace period, the following things typically occur: 

• Late fee charged: Your loan terms specify the amount and timing of late fees. These fees are added to your outstanding balance. 
• Delinquency status updated: Your loan becomes past due, and your mortgage account will reflect that the payment is outstanding. 
• Delinquency notices may begin: You may receive letters, emails or phone calls to inform you of the past-due status and encourage resolution. 

When late payments are reported to credit bureaus 

A mortgage payment is typically reported to the credit bureaus once it is 30 days past due. This is an industry standard and applies to most lenders. 

This means: 

• A payment made one day past the grace period is late but not reported. 
• A payment 30 days past due may be reported. 
• A payment 60, 90 or more days past due can cause additional credit impacts. 

Credit reporting is one of the most significant consequences of a late mortgage payment, so acting early is important. 

How late payments affect your mortgage account 

When payment becomes late or past due, several things may occur: 

• Late fees accumulate: Additional fees may be added if multiple payments are late. 
• New payments may be applied to past-due amounts: Future payments may be used to satisfy outstanding balances before being applied to your current monthly payment. 
• Delinquency may continue to escalate: If payments remain unpaid, delinquency stages typically progress to 30, 60, 90 or more days past due. 
• Communication from Desert Financial increases: You will receive notices intended to help you resolve the delinquency and avoid further impact. 

What happens if you miss more than one payment 

If multiple payments are missed, additional things may occur: 

• Multiple delinquency notices: You will receive reminders and required disclosures about your options and your account status. 
• Potential impact on escrow: If your loan becomes seriously delinquent, escrow advances may be affected or limited. 
• Increased credit impact: Each 30-day increment of delinquency can result in additional negative credit reporting. 
• Loss mitigation review: If delinquency continues, you may qualify for programs such as repayment plans, loan modifications or other relief options. 
• Foreclosure proceedings: This is a last-resort option and begins only after extended delinquency as required by federal and state regulations. 

What to do if you know your payment will be late 

If you anticipate being late, contacting Desert Financial early is the best way to stay ahead of the situation. Here’s what you can do: 

• Review your budget and determine what you can pay. Even partial payment can help reduce delinquency impacts. 
• Check your online banking or autopay settings. Make sure your payment method is up to date. 
• Reach out to Desert Financial. We can review your account, explain your options and help prevent further issues. 
• Explore hardship assistance: Depending on your situation, you may qualify for temporary relief or alternative payment arrangements. 

Options for getting back on track 

Desert Financial can review your situation and help identify the best path forward depending on your loan type and situation: 

• Repayment plan: Catch up over time with smaller additional payments. 
• Loan modification: Adjusts the terms of your mortgage to make payments more affordable. 
• Forbearance (in limited situations): Temporary payment relief during financial hardship. 
• Partial payment acceptance: Making smaller payments toward the delinquency may help reduce the outstanding amount. 

What not to do if you’re behind on payments 

To protect your financial well-being, avoid: 

• Ignoring notices. This can lead to further delinquency and limit available options. 
• Stopping all communication. We cannot assist without understanding your situation. 
• Relying on third-party "mortgage relief" companies. Many of these are scams or charge unnecessary fees. 
• Waiting too long. Early action gives you more options and minimizes impact. 

When to contact Desert Financial 

We’re always here to support you with clear answers and member-first service. Contact Mortgage Servicing at (602) 433-7097 or firstmortgageservicing@desertfinancial.com if: 

• You expect to be late ona payment.
• You have already missed a payment.
• You received delinquency notices.
• You want to understand late fees or account status.
• You are struggling with your monthly payment.
• You want to explore loss mitigation or assistance programs.