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Can Your Credit Be Hurt By A Missed Or Late Mortgage Payment?

real estate and credit score

If you have recently purchased a new home in the Dallas or Flower Mound area or have lived in your home for many years, you may be curious just how (or if) missing a mortgage payment can affect your credit. As trusted real estate agents in the North Texas area, we realize that there are times when homeowners have to decide which obligations will be met first, and you wonder, “Can your credit be hurt by a missed or late mortgage payment?” If you miss a single mortgage payment, will it affect your credit? Depending on how long it is before you do make the payment, it definitely can affect your credit.

Generally speaking, your credit rating can be affected if your payment is more than 30 days late. Mortgages are typically very large loans, and the penalties for late payments are usually much stiffer than those for a late credit card payment. The terms in your mortgage agreement will outline exactly what you can expect, but be ready for the late payment to show up on your credit report, as your lender will likely report the late payment (or even non-payment) to credit bureaus. Making your mortgage payment late can prevent you from qualifying for a mortgage loan in the future, and typically remains on your report for up to seven years.

Considering handing the keys to your home back to the lender?

Before you do, realize that missing a payment altogether or being late on your mortgage payment will not have as great an impact as walking away from your mortgage, which ultimately ends in foreclosure and will impact your credit report for seven years. While you don’t want to miss a payment if there is any way at all to prevent it, it is still preferable over a short sale or foreclosure.

There may be other solutions to your financial dilemma. Regardless of the situation you are in, simply walking away from your home is the last thing you should do – and it could literally ruin your credit for years. Discuss the possibility of refinancing or other options with your lender, or check into government programs which may be available to help you pay your mortgage payments while determining whether walking away truly is the only way to go. It is critical to be thoroughly informed of all of your options before you make a drastic decision that could dramatically change the course of your life!

At Team Nelson, our Flower Mound real estate agents have plenty of tips for homeowners, or those looking to buy or sell a home in the North Texas areas of Frisco, Denton, Highland Village, and other nearby communities. Give us a call today!

What People Are Saying

  • One word to describe Team Nelson would be AWESOME! I worked with Bill, Andra, Andrea and Kelly. They respond to e-mails and phone calls quickly and are experts in every aspect of buying and selling real estate. We used Team Nelson to sell our house and buy a new house within 30 days of each other....

    Hondrey Avatar
    Hondrey
    4/30/2015

    Casey was recommened to us by a family member. We were really nervous about selling our house in the middle of the COVID-19 shelter in place time period. We needed to sell within a month or so in order to proceed with our new build that we started back in 2019. With this in mind, Casey was ready to take the challenge.

    Casey and Bill showed up to the house on time, and we were all on the same page for listing time, price, and details. The next day, pictures of the house were taken, and the following day our house was on the market. The next 4 days, we had over 1,000 views, 100 saves, 12 showings, and 4 offers! None of that would have been possible without the expertise of the photos, details, and networking of Your Home Free. After a couple of negotiations with the assistance of Casey, we sold the house for a full price offer! Our house was on the market for less than a week! We are so glad we went with Bill and Casey, and would recommend them for any home sell!

    sarahmccue1318 Avatar
    sarahmccue1318
    6/14/2020

    Could not have been more pleased with Your Home Free! They provided personable and professional service throughout our home selling/buying process. The attention to details and the confidence that we had in the whole team made the process so much easier! They exceeded our expectations. Highly recommend!

    Connie Correll Avatar
    Connie Correll
    3/11/2019
  • My husband and I were relocating to Colorado and were very unfamiliar with Denver. We're thrilled we got in touch with Zac because he made the process the easiest it could ever possibly be. We've purchased 2 homes in California before, and this was the easiest process. He was amazing with learning what we were looking for in a home, visiting the homes and sending us video walk-through tours while we were still out of town, and helped us find & close on the home of our dreams! Throughout the process, he was extremely responsive & easy to get ahold of, thoroughly answered all of our questions, and provided us great advice. The rest of his team that help with all the escrow and closing logistics were equally as helpful. On top of it all, they are just good, friendly people that are a pleasure to work with. I highly recommend them!!

    Devon Gardner Avatar
    Devon Gardner
    8/11/2019

    Bill and his team were great from day 1. They were extremely knowledgeable and very professional. Great experience and best of all he saved us over $22,000!!

    kprichard9 Avatar
    kprichard9
    2/22/2018

    Best ever! We've bought three homes with the Nelsons and have loved all three experiences (and homes.) Couldn't possibly give them a higher recommendation.

    jaimie scott Avatar
    jaimie scott
    12/11/2018
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