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Monday, January 8, 2024   /   by Bob Cowan



The route to financial security can be obstructed by unforeseen financial obstacles in the dynamic world of homeownership. Our goal is to enlighten readers on mortgage payments, grace times, and the possible repercussions of defaulting.

Understanding the Due Date for Your Mortgage

What Is The Due Date on Your Mortgage?

Generally speaking, your monthly mortgage payment is due on the first of the month. Consult the promissory note you signed at closing to determine your precise due date, or get help from your mortgage servicer.

The Mortgage Grace Period: What Is It?

The grace period acts as a safety net for unanticipated circumstances and lasts for an additional 15 days following the payment due date. There are no late fees during this time, and your credit report is unaffected.

Late Payments on Mortgages: Breaking Down the Effects

It is essential to comprehend the consequences of late payments in order to take corrective action.

15 Days Late


After the grace period, a late fee, typically around 5% of the principal and interest payment, is applied. This fee recurs monthly until payments resume.


30 Days Late


Credit bureaus are notified of late payments, impacting your credit score. Communication with your servicer is vital at this stage to explore potential solutions.


45 Days Late


A written notice of delinquency is sent, emphasizing the outstanding amount. Communication with your servicer becomes even more critical.


90 Days Late


Late fees persist, credit reporting continues, and a demand letter is issued, signaling potential foreclosure proceedings.


120 Days Late


Unless alternative arrangements are made, foreclosure proceedings can commence. However, there's still a window of opportunity to salvage your home, depending on your state's regulations.

The Dilemma of Credit Score

If you pay your mortgage late, it can negatively affect your credit score and affect your finances for a period of seven years. The key to reducing these impacts is being watchful and taking preventative action. Visit Free Annual Credit Report to examine your credit history.

Getting Around the Obstacles: Your Choices

Housing Counseling

Free counseling services are available from the Department of Housing and Urban Development to talk about preventing foreclosure and to learn about your choices. Here is a list of housing counselors who have been approved by HUD.

Mortgage Forbearance

Forbearance gives you a short-term break in the event of financial difficulty by enabling you to defer or lower mortgage payments. But repayment—including accumulated interest—is unavoidable.

Loan Modification

Working with your servicer to adjust loan terms can be a proactive step. Modifications may include lower interest rates or extended repayment terms, making monthly payments more manageable.

Selling Your House Strategically: An Advantageous Option

Selling your house can be a proactive and calculated move to avoid financial difficulties, even if it may first seem like a last resort. Legal fees and mortgage payments can add up rapidly, so selling your house quickly might have a number of benefits and improve your financial situation.

The Advantages of Selling Your House Earlier

Maximizing Net Profits:

You can maximize the net proceeds from the sale of your house if you take the initiative to sell it before financial difficulties get out of control. This can play a crucial role in obtaining a financial safety net to manage future undertakings.

Credit Score Preservation:

You can take proactive measures to maintain your credit score by selling your house quickly. A well-timed sale can keep your creditworthiness intact and ease the changes you experience when moving, by preventing late mortgage payments.

Unlocking Equity:

It's possible to unleash significant equity by selling your house in California, where home values frequently increase. This equity may prove to be a useful asset for upcoming real estate ventures or other financial objectives.

Simpler Requirements for Housing:

Sustaining your credit score improves your eligibility for future home purchases or rental properties. It gives you options for where to live and makes you seem like a good prospect to mortgage lenders and landlords.

Strategic Selling: An Optimistic Method

With California's real estate market being so strong, selling strategically can be a proactive way to protect your financial health. Recognizing the possible advantages of selling your house quickly when faced with financial difficulties might help you set the path for a successful and empowered homeownership experience.

California Mortgage Relief Program

The California Mortgage Relief Program provides vital support to California homeowners who are experiencing financial difficulties without requiring them to repay the money. Check out this government program if you've struggled with late payments or other money issues.

Foreclosure Process in California

Non-judicial foreclosures in California give lenders the power to compel a house sale without involving the courts. However, before foreclosure may take place, several legal requirements must be met.

Your Rights and Resources for Assistance

Protections against foreclosure are offered by federal and Californian legislation, such as the Homeowner Bill of Rights. This law guarantees:

• Contact Before Foreclosure: The lender must first get in touch with you to talk about preventing foreclosure before starting the procedure.

• Single Point of Contact: It is necessary to have a communication partner.

• Dual Tracking Protection: While your application for loss mitigation is underway, foreclosure cannot take place.


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  bob cowan, san clemente, platinum living realty, january 2024

Platinum Living Realty
Bob Cowan
120 Newport Center Drive
Newport Beach, CA 92661
DRE# 01970237

Based on information from California Regional Multiple Listing Service, Inc. as of July 15, 2024. This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.
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