Late Payments
Failure of a borrower to make timely mortgage payments under a loan agreement.

Borrowers with a delinquent mortgage will generally have a higher interest rate than those who are not deliqunet. Credit scores also play an important factor in this.

Different types of delinquency will affect your score in different ways. A late payment on your mortgage is the most damaging.

Your credit report will reflect these late payments, using the standard symbols listed below, to read the late payment history.

ie: R2 would show a revolving (credit card) debt, that has been past due more then 30 days.

O = Open (entire balance due each month)
R = Revolving (amount due can change each month)
I = Installment (fixed amount due each month)

0 = Approved, but account is too new to rate or not yet used
1 = Paid as agreed
2 = 30 or more days past due
3 = 60 or more days past due
4 = 90 or more days past due
5 = 120 or more days past due or is a collection account
7 = Making regular payments under a wage earner plan or other repayment arrangement
8 = Repossession
9 = Charged off account

Having delinquencies on any loan will decrease your credit score, and will make it more difficult for you to obtain financing for your home.

If you know that your credit report contains delinquencies which are incorrect or are not attributed to you personally, please tell one of our loan specialists about the situation so that we may assist you in removing the delinquencies and qualifying for the loan program you truly deserve.

Your delinquency will have a major impact on your credit scores. The more recent the delinquency, the more your scores will drop.

A delinqency on a mortgage loan will be considered a greater derogatory factor than a delinqency on unsecured credit by a mortgage loan underwriter.

For this reason, homeowners would be advised to do everything possible to try and make their mortgage payments on time.

Delinquency is when you fail to make mortgage payments, when they are due. For most mortgages, payments are due on the 1st day of the month. Even though they might not charge a "late fee" right away, the payment is still considered to be late and the loan delinquent. When a loan payment is more than 30 days late, most lenders report the late payment to one or more credit bureaus.

Delinquencies are also known as "lates." On your mortgage they are reflected in days 30, 60, 90, or 120. A 120 day late is also considered foreclosure, in the eyes of any lender.

If you ever get seriously behind in your mortgage payments and feel foreclosure looming be especially wary of companies offering assistance. Often these are scam-artists who swindle thousand’s from unknowing homeowners, sometimes leaving them penniless and homeless.

Most lenders consider a loan to be delinquent when payments on the loan are 30 to 60 days past due.

Most lending banks will overlook delinquencies if the homeowner can satisfactorily explain the cause of the delinquencies and the unlikelihood of recurring. Acceptable causes include divorce, separation, tragedy in the family, loss in the mail caused by relocation, etc. Homeowners are often required to supply supporting documents.

If you find yourself in a situation where you might not be able to make all of you monthly obligations you want to make sure that you make your house payment in time as to not be 30 days late. A 30 day late on your house payment can hinder you from qualifying for a mortgage more so than a 30 day late on a credit card.

There are many lenders that will finance you even if you are delinquent.