What does mortgage delinquency mean?

Before you take out a mortgage, it’s important to make sure that you can keep up with the monthly payments. Falling behind on your mortgage payments can have serious consequences for your finances and you could even lose your home. A mortgage payment is typically considered late if it’s not made within 30 days of the due date.

Even the most financially responsible homeowners can encounter job loss or other unexpected financial hardships that can result in mortgage delinquency. Here, we’ll dive deeper into the consequences of mortgage delinquency and how you can avoid it.

Mortgage delinquency, defined

Mortgage delinquency means that a borrower is at least 30 days overdue on making at least one mortgage payment. Falling into mortgage delinquency can result in late fees and damage your credit. If you’re still delinquent on your mortgage after a certain point, you’ll default on your mortgage. The lender can begin the foreclosure process and you could lose your home.

Common causes of mortgage delinquency

Nobody who takes out a mortgage intends on falling behind on payments, but it can happen if your financial situation changes. Some of the more common reasons home owners become delinquent on the mortgage include:

• Job loss
• Unexpected financial commitments
• Unsustainable medical expenses and debt
• Interest rate increases on an adjustable-rate mortgage
• Insufficient emergency savings
• Overspending

Current mortgage delinquency rates

According to data from the Federal Reserve Board, the delinquency rate on single-family residential mortgages in the U.S. was 1.79% as of Q2 of 2025. This rate has held relatively steady since Q3 of 2022.

The highest mortgage delinquency rate since the start of 2020 was 2.83%, recorded in the third quarter of 2020. In contrast, the delinquency rate hit a staggering 11.49% in Q1 2010 following the housing crisis and Great Recession.

Consequences of falling behind on mortgage payments

Falling behind on your mortgage payments can result in some serious repercussions:

• 30 – 60 days late: Your mortgage is considered delinquent. You’ll likely get charged late fees and your credit score could take a hit.
• 60 – 90 days late: Your lender will likely charge more late fees and interest on the amount that is overdue and you may hear from a debt collections agency.
• 120 days late: Your lender can start the preforeclosure process, putting you at risk of losing your home.

Your late fees accumulate 

Lenders typically charge penalty fees for late payments. Some lenders allow for a grace period that is a set amount of time after the payment due date that you can still make your payment without it being considered late. Grace periods vary depending on the lender but are typically 15 days. After that, the longer your mortgage payment is delinquent, the more you can expect to be charged in late fees.

Your credit score decreases

Once the grace period is over and your mortgage payment is officially considered late, it will be reported to the credit bureaus. This can damage your credit and make it more difficult to get future loans or lines of credit. Even if you’re eligible, you’ll likely have to pay a higher interest rate. Missed payments remain on your credit report for up to 7 years, which can make it challenging to repair your credit score.

Your home’s equity falls

Equity is the amount of your home that you actually own. You can calculate the amount of equity you have by taking the current value of your home and subtracting what you still owe on your mortgage. During mortgage delinquency, you’ll incur additional fees and interest that increase the total amount you owe your lender. The value of your home may not have changed, but you’ll have less equity because you owe more.

You’re at risk of foreclosure and legal actions

In the worst-case scenario, mortgage delinquency can lead to foreclosure. This is a legal process during which the lender can repossess the home and sell it to recover the remaining balance on the loan. If your mortgage remains delinquent for too long, you’ll receive a notice that you have defaulted on your loan. Lenders typically don’t start the foreclosure process until you are at least 120 days behind on your mortgage. That’s why it’s critical to talk with your lender or servicer and work with them to find a way to get back on track with your mortgage payments.

You experience emotional stress

We’ve covered how mortgage delinquency affects your financial life, but it can also negatively impact your emotional well-being. Falling behind on your mortgage can be very stressful, especially if you aren’t sure how you’re going to come up with the money to settle up on the amount that’s overdue. The idea of potentially losing your home only adds to the weight of the experience.

Rocket Mortgage is here to help

If you’re worried about falling behind on your mortgage payments or already have, Rocket Mortgage offers a variety of relief options for you. Learn more about what you can do to stay in your home, how you can make a graceful exit, and the next steps to take.

How to avoid or mitigate mortgage delinquency

The consequences of mortgage default include late fees, credit score damage, and foreclosure. To help avoid these outcomes, consider the following solutions for mortgage debt relief.

Communicate with your mortgage servicer early

If you’re struggling to keep up with your mortgage payments and you’re worried you may fall into mortgage delinquency, contact your lender and servicer as soon as possible. Taking this step early on in the process can help establish trust and build goodwill. Most of all, it can help you avoid the consequences of defaulting on a home loan.

Request a loan modification or deferment

Lenders, banks, and credit unions will work with borrowers to find a practical solution. This could come in the form of a payment plan or loan modification that helps borrowers free up cash and catch up on past-due payments.

A servicer may offer to modify a borrower’s mortgage terms to get them back on track with their monthly payments. They may adjust the mortgage’s remaining principal balance, interest rate, or loan term. This doesn’t necessarily get you off the hook for the amount you that owe, but rather restructures your loan in a way that’s more manageable for you to afford. You may end up paying more overall, but it can help you catch up with making on-time payments and ease the financial pressure.

A servicer may also offer a borrower with an adjustable-rate mortgage (ARM) a fixed-rate mortgage so they have a stable monthly payment.

Explore forbearance programs

Forbearance is a temporary agreement to pause or lower a homeowner’s mortgage payments. Typically, forbearance is better suited for financial emergencies resulting from short-term hardships, such as divorce, sickness, or loss of income.

Compared to foreclosure, forbearance is a preferable alternative that lets you keep your home. But while it offers a temporary financial lifeline, it doesn’t erase your debt. Borrowers must repay missed or reduced payments according to the timeline set by their lender.

Consider refinancing your mortgage

Another way to restructure your mortgage to make it more affordable is by refinancing. When you refinance, you replace your current mortgage with a new loan that has more favorable terms depending on the goal you want to achieve. Refinancing can help you score a lower interest rate and reduce your monthly payment. Another way to reduce the amount you owe each month is to extend your loan term. While you’ll likely end up paying more interest overall, it can help make each payment more affordable. Just remember that refinancing comes with closing costs that you’ll have to pay up front. If you’re already in forbearance, this can make it more difficult to refinance.

Seek government assistance

The U.S. Department of Housing and Urban Development offers a variety of resources to help you get free assistance on how to avoid foreclosure. You can work with a HUD-approved counseling agency to assess your situation, evaluate your options, and mitigate your losses. You can also call the HOPE Hotline that’s open 24 hours a day, seven days a week at (888) 995-HOPE (4673).

How can I reinstate my loan after delinquency?

If you’ve fallen into mortgage delinquency but want to get your loan back on track, here are some courses of action you could take.

Lump-sum payment vs. paying over time

One option is to make a lump-sum payment to get up to date on your mortgage. If you have the cash available to do it, this can be a clean way to get out of delinquency. However, not everyone is in a position to make this kind of large payment. Talk to your lender about options to pay back the amount you owe in installments over time.

Documents you’ll need to provide your lender

Your lender will likely ask for documentation that reflects the financial hardship you’ve been facing. This can include bank statements, proof of job loss, and proof of other assets that show you have the resources to pay off what you owe under new terms.

Confirming that your loan is reinstated 

You’re not out of the woods until you have taken action to accept and follow through with a mortgage reinstatement program approved by your lender. Once all missed payments and associated fees are brought current upon completion of the mortgage reinstatement plan, foreclosure is no longer a threat, and you’re clear to proceed with future mortgage payments.

The bottom line: You can overcome mortgage delinquency 

Mortgage delinquency occurs when you’re late on one or more monthly mortgage payments. While the initial penalties can include late fees and credit damage, the repercussions can escalate to losing your home.

If you’re facing mortgage delinquency, it’s critical to communicate with your lender or servicer. Remember, they want to avoid foreclosure as much as you do and will likely work with you to develop a plan that allows you to get back on track with your mortgage and stay in your home.

If you’re seeking mortgage assistance, read our guide to mortgage relief options for more strategies.