Rolling late payment

When you miss a mortgage payment by thirty days and do not make it up the next month by making a double payment you will have a rolling 30 day late payment showing on your mortgage payment history.

Most lenders will allow Rolling 30 day lates. However some don't.

When qualifying for an Alt-A or subprime mortgage, most lenders will allow up to six rolling 30 day late payments to only count as a 1X30(one 30 day late). This is for loan qualifying purposes only, keep in mind that having a series of rolling late payments will also have a very detrimental impact on your credit score

For a non conforming or sub prime mortgage the last 12 months of your payment history are all that most lenders will look at.

In order to determine whether or not a series of 30 day late mortgage payments reported on your credit report constitute a longer term delinquencies, such as a 60 or 90 day late, we will be required to request a mortgage pay history from your current lender.

Many lenders that will allow rolling 30 day lates will not count rolling 60 or rolling 90 day late payments. Usually, counting consecutive late payments as only 1 late payment is only permitted with late payments that are less than 60 days late.

It is important to contact your current mortgage loan servicer to determine exactly when and how many times your mortgage loan has been late. You are your own best advocate for disputing and correcting any potential errors on your credit report.

» DISCLAIMER: The information contained in this article on 'Rolling late payment' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.