How many mortgage payments can you miss before foreclosure? - Oklahoman.com

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"How many mortgage payments can I miss before foreclosure?" is a crucial concern these days, as the coronavirus continues to drastically impact household incomes.

As of May, more than 4 million mortgages were past due, according to Black Knight — and the delinquency norm, generally two or three missed payments and you're out, has been replaced with new rules in the pandemic.

First, however, let's look at missed payment practices under normal circumstances.

• What happens if I miss a mortgage payment?

A mortgage is a contract between a borrower and a lender in which the lender agrees to provide money upfront while the borrower agrees to repay the debt over time and with interest. As such, a borrower with late or missed payments can face penalties ranging from late fees to the loss of the home, which is collateral for the loan.

If you miss one mortgage payment, you'll likely be contacted by your lender, but it's unlikely your home will be foreclosed right away. You may receive a formal letter alerting you to the possible actions the lender may take. Do not disregard this notice — it's a serious matter.

Your lender also will report the missed payment to the credit reporting agencies, which can hurt your credit score. How many points you lose varies, but generally, the higher your score, the larger the reduction.

Although late payments are undesirable, they are often with little, if any, consequences. Many lenders have a 15-day grace period that allows borrowers to make payments after the due date without penalty.

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How many mortgage payments can you miss before foreclosure? - Oklahoman.com
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