How do late mortgage payments affect credit?
Being late or behind on the mortgage will affect the client’s credit more than just about anything else, short of a foreclosure. Once a client has stopped making payments, or is making haphazard payments, their credit will be affected. Some banks report immediately after a payment has gone late. Some give a longer grace period. With all the files that lenders are faced with these days, it would seem that credit reporting is not their top priority, but their credit rating will definitely decrease from any missed payments. We often tell clients that are concerned about their credit scores, that credit can be fixed; you need to decide which is your priority, your credit or your home.
