Ask Realty Times: Will My Late Payment Show on My Credit Report?

Written by Posted On Tuesday, 04 December 2007 16:00

Question: I am only eight days late on my mortgage payments because I had to put a stop payment on a check I sent. I have since overnighted a payment to the lender via certified check to make the payment.

But today I get a notice from the lender saying I am delinquent. Can they list this on my credit report?

Answer: A mortgage is a contract -- a lender gives you money in exchange for your obligation to repay the debt on certain terms and conditions. One of those conditions is timely payment.

In the usual case, a mortgage will have a due date and then a grace period during which a late fee will not be assessed. However, the loan is not due during the grace period, it is due on or before the required payment date.

What consequences can emerge from being late? Can the lender charge an extra fee? Change the interest rate? Call the loan? Be aware that mortgage agreements differ -- and some loans are predatory.

In terms of credit reports, only payments at least 30-days late should appear.

It may be that the notice you received was sent automatically by the lender as a "friendly" reminder prior to delivery of your payment. To be sure, call the lender and ask if your account is now current and what the delinquency notice means.

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