Missing mortgage payments: How many can I miss before foreclosure?

Many people use a mortgage to purchase a home. It’s an agreement between a lender and a borrower in which the lender pays a large sum upfront for the home purchase, and the borrower agrees to pay the lender back over time and with interest. As part of this agreement, the home acts as collateral on the loan. If the borrower repeatedly misses payments, the lender can begin foreclosure on the home. In 2024, foreclosure actions were reported on 322,103 U.S. properties, according to ATTOM Data Solutions.

What happens if I miss a mortgage payment?

If you miss one mortgage payment, don’t panic just yet. Most lenders offer a 15-day grace period during which you can pay your mortgage late without incurring penalty fees.

After the 15-day mark, though, your lender will likely contact you and may send a letter warning you of potential actions it might take. You’ll also start incurring late payment fees at this point — usually a percentage of your monthly mortgage payment. For example, if your monthly mortgage payment is $2,200, a 5 percent late fee equals $110.

How many mortgage payments can I miss before foreclosure?

When you start to miss multiple payments without working out a solution with your lender, you become at serious risk of foreclosure. Typically, foreclosure proceedings begin after you miss four consecutive mortgage payments (120 days delinquent), but the timing varies by your municipality, the housing market and your lender.

If you miss a mortgage payment and don’t reach out to your lender, it may send you a notice of default. Read this document very carefully, and if you can afford to pay back the due balance, follow your lender’s instructions for doing so. If you have penalty fees and can prove financial hardship, ask your lender if it might waive them.

If you are delinquent for 90 days (three consecutive payments), you’ll typically receive a formal Demand Letter or Notice to Accelerate from your lender. This letter states that you have 30 days to bring your mortgage in good standing. At this point, you are still at risk of foreclosure, but it doesn’t have to end that way. Most lenders don’t want borrowers to default on their loans and will willingly work with borrowers to avoid foreclosure.

The foreclosure timeline

1. You miss a mortgage payment (and the grace period): If your mortgage is past 15 days due, you’ll incur late fees, and your lender will likely contact you about the missed payment.
2. You receive a notice of default: After 90 days of missed payments, expect your lender to file an official notice of default and a lis pendens. A lis pendens puts the “world on notice” that a lawsuit relating to your property may be pending. Depending on the state you live in, copies are typically sent by certified mail or even tacked to your front door. They’ll also be filed with your local recorder’s office.
3. Your home goes into preforeclosure: The third stage happens after you receive your notice of default but before your home is auctioned off (sold) in a foreclosure sale. When you are in preforeclosure, paying everything you owe, including any interest, late penalties and fees, can bring your mortgage current. Each state has its own timeline for this part of the process.
4. Your lender sets a notice of sale: After 120 days of delinquency, your lender will file a notice of sale, including a set date and time for an auction on your home. This information may be published in newspapers and posted on public buildings, such as a courthouse. If you can bring the mortgage current and repay all the incurred fees before the auction date, you may be able to reclaim your home via the “right of redemption.”
5. Your household is evicted: After your home is auctioned, you are required by law to vacate the property. The buyer will likely dictate how much time you have to pack your things, which might only be a few days. If you refuse to adhere to an eviction notice, law enforcement is legally mandated to remove you, your family and your belongings from the home. You might be able to ask your lender or the buyer to do a “cash for keys” situation, which is where they pay you a small amount to move.

Factors that impact the foreclosure timeline

Your foreclosure timeline depends on several factors, including the laws and regulations in your state, your lender and sometimes the housing market.

Foreclosure differs by location

The foreclosure process differs on a state-by-state basis. For example, some states allow a notice of default to be tacked on your front door. Other states have different rules about how the notice of sale is posted and shared with the public and whether a lender must file a lawsuit before it forecloses on your home.

• Judicial: If you live in one of the 21 states, including Florida, New York, Ohio, and others, with judicial foreclosure, the lender must file a lawsuit. The homeowner has 30 days to pay their debts, and if they don’t, the foreclosure process progresses. It can take longer for a foreclosure to occur this way because the foreclosure must move through the state supreme or housing court. If the courts are backed up, the process can take much longer, which may give you time to figure out a way to pay your debts or work out a solution with your lender.
• Non-judicial: In non-judicial states, including California and Texas, when the borrower goes into default, the lender can put the house up for auction without filing any legal paperwork. This process often moves quicker than a judicial foreclosure because it doesn’t involve housing court. If a lender wants to foreclose on your home in a non-judicial state, it may happen sooner than the 120-day timeline, which is considered guidance, but is not a law.

Foreclosure differs by lender

Not all lenders follow the same timeline for foreclosing on a home. While most lenders will file a notice of default after 90 days or three months of missed payments, others may wait longer or even send it to you sooner. While 90 days is common practice in the industry, it’s not a law. Your mortgage terms should outline what constitutes a default.

Foreclosure and housing markets

Housing markets may influence how quickly a lender decides to begin foreclosure proceedings. In a strong market, where an auctioned home will likely sell quickly, or in a local municipality where the laws and the court docket favor the lender, the process may move much faster.

Mortgage lenders may be more relaxed in a weak housing market because it may be harder to sell the home. After all, most lenders would rather work with borrowers to remedy the situation instead of needing to seize and then sell the home.

How can a payment plan help if I miss a mortgage payment?

Setting up a payment plan with your lender can help you catch up on late payments over a fixed timeline. This option may work best when missed payments are due to a short-lived financial difficulty versus a long-term hardship.

Most payment plans last anywhere from two to six months (sometimes longer), and during that time, your monthly payments increase to compensate for the overdue balance. If you follow this arrangement, it can help you to get current on your payments again and avoid foreclosure.

Other steps to take if you fall behind on your mortgage

If you are unable to use a payment plan to get your mortgage balance back in good standing, speak to your lender about other options, including:

• Mortgage forbearance: This option helps homeowners stay out of foreclosure by temporarily reducing mortgage payments or pausing them altogether during a short-term setback. If you qualify for mortgage forbearance, you must show evidence of your financial hardship. Keep in mind you will still need to repay what you owe when the forbearance period ends.

• Loan modification: A loan modification permanently changes your current mortgage by lowering the interest rate or altering your loan’s structure so that you can afford to make payments. You’ll need to provide proof of a significant financial hardship and gain approval from your lender to go this route.

• Short sale: A short sale is the act of selling a property with permission from your lender for less than is owed on the mortgage. The lender takes the proceeds and forgives the difference, removing the borrower from their mortgage debt. You must establish financial hardship and have an agreement with your lender in place prior to a short sale.

• Deed in lieu of foreclosure: A deed in lieu of foreclosure is the legal process of giving your lender the deed to your home. In return, the lender will release you of your mortgage debt. It may stay on your credit report for four years, and you will be required to vacate your home. Not all lenders will agree to this option.

FAQ

• How do missed mortgage payments impact my credit score?

  One missed mortgage payment (even a few days past the grace period) will not hurt your credit score. A payment must be at least 30 days late for the lender to report it. How many points your credit drops after a missed payment varies; the stronger your credit score is, the steeper the decline you’ll see. In addition, a late mortgage payment could stay on your credit report for seven years.

• What’s the difference between preforeclosure and foreclosure?

  Preforeclosure is the period after a borrower defaults on mortgage payments but still retains ownership of the property, offering a chance to still make good on the debt. Foreclosure is the subsequent and more final phase of the process, in which the lender takes possession of the home and may sell it to recover the loan balance, forcing the current owner to leave the home.

• How far behind on my mortgage can I be before foreclosure?

  In most cases, you can be as far as 120 days (four consecutive payments) behind on your mortgage before foreclosure on your home begins.