A Timeline for Falling Behind on Your Mortgage

From the first missed payment through the 120-day mark and beyond, here is when servicer notices arrive, what federal rules guarantee, and which options to request at each stage.

Missing a mortgage payment sets off a sequence, but it is a slower and more structured one than many homeowners fear. Federal rules set a minimum waiting period before foreclosure can begin, and they give you the right to ask about alternatives at each step. Here is what typically happens after the first missed payment, and what to do at every stage.

Days 1 to 60: Late Fees and Servicer Outreach

The day a payment comes due unpaid, your loan is delinquent. Your monthly statement shows the amount of any late charge and the date it will be imposed if the payment does not arrive. Grace periods are set by your loan documents, so check them rather than assuming you have a cushion.

The most useful step in this window costs nothing: call your servicer if you can see trouble coming. Ask what assistance programs exist and what documents you would need. Keep a statement handy, since it breaks the payment into principal, interest, escrow and fees, which is what’s inside a monthly mortgage payment.

Federal servicing rules require servicers of loans on a borrower’s principal home to reach out to delinquent borrowers and discuss their options. Expect letters and phone calls, and answer them. Keep a simple log: the date, who you spoke with and what was promised. Ask for the available options in writing. One caveat: small servicers that service 5,000 or fewer loans, all of which they or an affiliate originated or own, are exempt from some of these requirements.

By Day 75: The Breach Letter

For many conventional loans, the servicer must send a breach or acceleration letter no later than the 75th day of delinquency. This letter is a formal demand, not a foreclosure filing. It must explain the exact nature of the breach, the action required to cure it, the date by which it must be cured, and, where applicable, the possibility that a deficiency judgment could be pursued if foreclosure proceedings go forward.

Treat the cure date as real. Paying all past-due amounts and fees by that deadline, called reinstatement, resolves the default. If that is not possible, the clock is still on your side.

The 120-Day Rule

Under Consumer Financial Protection Bureau rules, except in rare cases, a servicer cannot make the first notice or filing required by law to start foreclosure until the loan is more than 120 days delinquent. The CFPB calls this the pre-foreclosure review period, and the rule preempts any state or local law that would allow foreclosure to move faster. A servicer also cannot move for a foreclosure judgment or order of sale, or conduct a sale, while you are performing under a loss mitigation agreement. That is how the rules restrict dual tracking, the practice of pursuing foreclosure while also working with a borrower on alternatives.

Those four months are your window. Use them to submit a complete assistance application and get it evaluated.

Days 60 to 120: The Options to Request

Loss mitigation is the umbrella term for alternatives to foreclosure. Depending on your loan type and investor, options may include:

• Reinstatement. Pay everything past due, including fees, at once.
• Repayment plan. Add a portion of the overdue amount to your regular monthly payments over a set period until you are current.
• Forbearance. A temporary pause or reduction of payments while a hardship runs its course, with the missed amounts repaid afterward. Forbearance after a job loss follows this structure.
• Loan modification. A permanent change to one or more loan terms. On FHA loans, past-due amounts are added to the principal balance and the term is extended at a fixed rate.
• Partial claim (FHA). The overdue amounts are placed in a second lien that charges no interest. You do not have to repay it until a trigger event, such as selling the home, satisfying the mortgage, or certain types of refinancing.
• Payment supplement (FHA). Uses a partial claim to reduce your monthly payment temporarily, for three years.

Timing rules matter as much as the menu. Your servicer generally must receive your complete application more than 37 days before a scheduled foreclosure sale to be required to review it. Once it does, you should hear back in writing within 30 days: an offer with a deadline to accept, a denial with the reasons, or a request for more documents. A complete application received at least 90 days before the sale also gives you the right to appeal a modification denial. In some cases a servicer may offer a simplified modification that does not require a full application.

Worth knowing

Send your application early and complete. A file that arrives less than 37 days before a scheduled foreclosure sale does not necessarily have to be reviewed at all.

After 120 Days: Foreclosure Referral and Free Help

If you are not eligible for loss mitigation, or you decline an offer, the servicer will usually begin foreclosure once the 120-day mark passes. What happens next depends on state law: the time from the start of foreclosure to an actual sale varies by state, as do court involvement, notice requirements and redemption rights. Your state housing agency or a local attorney can explain the sequence where you live.

You do not have to work through this alone. HUD-approved housing counseling agencies offer free, expert assistance on avoiding foreclosure, including guidance through the loss mitigation process. Call the CFPB at (855) 411-CFPB (2372) to be connected to a counselor in your area, or use the CFPB’s Find a Housing Counselor tool. A counselor can help you assemble documents, decode servicer letters and meet deadlines. The earlier in the timeline you reach out, the more options are usually still available.

Related guides

• When Refinancing Your Mortgage Makes Sense: how replacing your loan with a new one works, something to weigh once your income has stabilized.
• What Is a Mortgage Escrow Account?: how taxes and insurance flow through your payment, which explains part of what the servicer is collecting.

Readers also ask

Does one missed payment start foreclosure?
No. Except in rare cases, a servicer cannot make the first notice or filing to start foreclosure until your loan is more than 120 days delinquent. Before that, you should see late fees and a breach letter with a deadline to catch up.

What is a breach letter?
It is a formal demand, not a foreclosure filing. On many conventional loans the servicer must send it by the 75th day of delinquency, explaining the default, how to cure it, the cure deadline and, where applicable, the possibility of a deficiency judgment.

When should I apply for loss mitigation?
As early as possible. Your servicer generally must receive your complete application more than 37 days before a scheduled foreclosure sale to be required to review it, and applying at least 90 days before the sale preserves your right to appeal a modification denial.

Do FHA loans have different options?
FHA borrowers have home retention options including repayment plans, forbearance, partial claims, loan modifications and payment supplements. You may need to complete a trial payment plan first, and only one permanent home retention option is allowed in any 24-month period unless a Presidentially Declared Major Disaster affects you.

This guide is general information about U.S. mortgages, not financial, tax or legal advice. Loan terms depend on the lender and on your credit, income and property, so confirm the details with your lender, and see consumerfinance.gov for official guidance.