What Is the Definition of Mortgage Delinquency?

What is mortgage delinquency? Generally, a mortgage is considered delinquent or late when a scheduled payment is not made on or before the due date. For example, if you have a monthly mortgage payment that is due on the 15th of each month, if payment is not received or applied by the 15th, then the mortgage is considered delinquent or late on the 16th.

Usually there is a late fee applied to a missed payment. The rate and total amount of the late fee is dependent upon the lender and the terms of your mortgage. In some instances, a late fee may not be applied initially. This, however, does not mean that the mortgage is not delinquent.

Also, some lenders may wait until a payment is more than 30 days late before substantial collection procedures begin. In this case, a lender may begin to report delinquency to the credit bureaus. This would show negative action on your credit report and cause future credit worthiness problems for you as well.

A mortgage delinquency, like any other credit-related delinquency, can impact your ability to get future loans. That is why you should make every effort to pay your scheduled mortgage payment on or before the specified due date. If you are unable to pay on time, then communicate promptly with your lender. The lender may have ways to help you avoid mortgage delinquency altogether.