Delinquency

Borrower(s) who fail to make loan payments as agreed under their mortgage or any other obligations result in a delinquency which will show on your credit report.

The types, consequences, and solutions to delinquency's vary.

Remember, it will not show up on credit until you are greater than 30 days late. Paying late by a day or two will only incur a late fee from your mortgage company, it will not show up on credit as a 30 day late.

Delinquent mortgage: A mortgage that involves a borrower who is behind on payments. If the borrower cannot bring the payments up to date within a specified number of days, the lender may begin foreclosure proceedings.

Make sure you know the exact date your mortgage is late with a late penalty and late with reporting to the credit agencies. Some lenders have different dates so if you have a 1st and a 2nd mortgage, the late dates could be different.

Some lenders wont really care too much if a borrower does not pay his credit cards on time. These lender are referred to as "Subprime Lenders".
All Lenders want to see that you make mortgage payments on time.

We have all had a time in our life where things were just a bit beyond our plans and have consequently been late with a payment or two. The first thing that you should do every year is to get free credit report to which you are entitled. Study the report for accuracy and question anything that does not appear correct. If you are behind in payments call your creditor and make a payment arrangement. If you are applying for a loan be prepared to explain any delinquencies, a lot of times a good letter will work wonders. If there has been an illness, or something else out of the ordinary, be prepared to explain it and follow up with any documentation. Underwriters aren't necessarily heartless, many of them are willing to help you and if they can see that there has been an aberration in your paying habits, they will usually go the extra mile. Don't despair, there is hope!

» DISCLAIMER: The information contained in this article on 'Delinquency' 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.