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Late Mortgage Payments

Mark Cappel
UpdatedJan 22, 2010

My husband is always late with the mortgage payments, will this affect my credit?

My husband pays the mortgage every month, but it is always late. He isn't financially responsible, but makes more than me, so he has to be the one to pay it. We have had debt collectors call us to collect the payment. I thought there was a grace period of 30 days. These collectors would call us 10 days or so after it was due. Also, since both of our names are on the mortgage, will the late payments affect my credit? I always pay my bills on time, have a couple of credit cards, and have always had good credit.

The mortgage loan documents that the two of you signed specifies the date that your monthly payment is due. If you fail to make the payment on the date specified the lender has the right to try to contact you to collect the payment. It is important that you and your husband find a way to make sure the monthly payments are made on time. I'm not sure what the underlying cause of the late monthly payments is, but there are several ways to solve the problem. First, I will address your concern with the late payments, and then I will discuss the impact this may have on your credit.

First, if it is the case that you and your husband have sufficient income to afford the monthly payments you may want to set up an automatic withdrawal from your banking account so that he doesn't make a late payment.

The second option is to have him write and sign the checks in advance, and you can put the check in the mail for him.

Third, if the problem is that he gets paid after the due date, and that is the reason the payment is late, you can contact the lender and inform them of the situation and ask if they can change the due date.

Fourth, if the problem is that the two of you cannot afford the monthly payment you should consider applying for a mortgage loan modification. If a loan modification does not work I encourage you to read an article I wrote, I Can't Afford My Home, What Should I Do?

If your name appears on the mortgage loan, being delinquent on the payments can negatively affect your credit rating. However, the credit bureaus only report a delinquency when the late payment is thirty days or more. Your reference to the thirty day grace period has to with your credit report, not what right the lender has to collect a payment.

It is very important to stay current on your mortgage payment so as to avoid a negative impact on the credit rating. A person's credit score usually takes a big hit when mortgage payments are missed, but continuing to pay your accounts on time should slowly improve your credit profile. How long it will take for your score to improve really depends on how much damage your credit score suffered during the past seven years, and how many positive credit listings are now appearing on your credit report.

If you are experiencing difficulties with harassing collection calls I encourage you to read Collections Advice.

I hope this information helps you Find. Learn & Save.