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Missed payment, how will this affect me?

Last March my automatic payment didn't  restart again and I missed that mortgage payment. I didn't realize it until I was late for my April payment. Therefore I missed 1 payment and was late on another. How will this affect me when I go apply to buy a new house? I'm thinking next year I would start looking for a house. Will it affect the interest rate I get? The amount I am approved for?
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November 05 2010 - Payne Phallen
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Profile picture for shapiroamg
You could/shoud have a major decrease in your credit score. You need to check your credit and figure out whether you were marked for a 30 day late or a 60.

Since it seems to be an error and I assume you have caught up once the error was discovered, perhaps you could ask your lender to remove any derogatory information. I would suggest calling customer service but dont take no for an answer, ask for your request to go up to another lever. If you get someone that agrees with you, get it in writing. That way you will have some proof that the derogatory information will be removed.
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November 05 2010
hi leex1080,   mortgage lates are a serious impediment to qualifying for a home loan unless your credit score remains in above average territory (greater than 700 if you plan on putting down 20%)

i would address the issue with several discussions with your current lender.....  sometimes borrowers with a solid past payment history can
pursuade their lender to "waive" the reporting of the late payment(s)...

otherwise, you're planning on buying next year, it may not be all that
important to address the situation......i would recommend that you get a copy of your credit report to see what is reporting right now...  thanks,  andy holloman, [Link deleted by moderator]
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November 05 2010
Even though a mortgage late is the worst kind of late you can have, if it is an isolated instance and especially if you reasonable explanation like you do, it won't really have much if any impact.

Your credit score will gradually go back up and that can improve your rate on conventional loans.  Credit score doesn't have as much of an impact on your interest rate for FHA loans.

Feel free to contact me for further discussion on the difference between FHA and conventional loans.
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November 05 2010
Pull your credit score now and see what it is.

If your credit score is above 720 you won't have any issues.
If your score is 620 to 719 it will be slightly more challenging.
Under 620 will make it difficult.

Unless there is other things influencing it. I doubt your score dropped much.

Key factor in buying a new house is knowing what your current house is worth in todays market.
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November 06 2010

Although it is difficult to tell how this would impact your credit score without knowing the rest of your credit history, I can tell you this.  Lenders are being very strict about mortgage payment history within the last 12 months.  So if you made up the March payment and only show 1 or two 30 day late payment, you should be OK once you have made 12 timely payments after the delinquency, provided your credit scores have recovered.

 

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November 06 2010
Your best strategy for now is going back to the lender and trying to get them to reverse the reported late pays and waive the late charges.  Payment error's like this occur more often than Loan Servicers will ever admit largely because of their deficient system follow up when the borrower notifies the Servicer of a new ACH payment account.  If you have documentation that shows they were notified with sufficient lead time of your new payment source account, then getting the lates reversed should be easy.
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November 07 2010
It will ding your credit, but if you contact the credit reporting companies and explain why, they probably will take it off your record.
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November 11 2010
 
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