Missing your house payment (mortgage) feels very scary. If you miss a few, it feels like the ground is falling. That is why it is important to know what happens and when it happens, so you can take the required steps. You need to be clear and not freeze when things get hard.

What Default Actually Means

Technically, you are “late” after just one missed payment. But the default, which is the big legal problem, usually happens after you miss payments for 90 days. This is when most banks start the process to take your house away (foreclosure). The timing is very important. You have more choices in the beginning than most people think.

The Foreclosure Timeline

Taking a house away does not happen instantly. Here is how it usually goes:

• Day 1-30: You missed one payment. The bank adds late fees and starts calling or emailing you.
• Day 30-90: Your loan is now “delinquent,” and your credit score goes down. The bank tries harder to talk to you.
• Day 90+: This is a formal default. The bank sends a paper called a “Notice of Default” (NOD).
• After the NOD: The legal process to take the house begins. How long this takes depends on your state.

In some states, the bank must go to court. This can take 12 to 18 months. In other states, they do not need a judge, so it goes faster and sometimes in only 3 to 6 months.

Impact Of Your Credit Score

Missing house payments is one of the worst things for your credit report. Just one foreclosure can make your score drop by 100 to 150 points. This bad mark stays on your record for seven years.

The experts at Experian say that people who lose their house to the bank often see their scores fall into the 500s. This makes it very hard to borrow money, rent a new place, or even get a job.

What Choices Do You Have Before the Bank Takes Your House?

When people are stressed, they forget one little detail. The banks actually do not want to take your house. It is too expensive and slow for them. You have several choices before things get too bad:

• Forbearance: The bank lets you stop or pay less for a short time. This is for when you have a hard time, like losing a job. You must pay back the money you missed later.
• Loan modification: The bank changes your loan rules. They might give you a lower interest rate or more years to pay, so the monthly bill is smaller.
• Repayment plan: You start your regular payments again, but you add a little extra money each month until you are caught up.
• Short sale: You sell the house for less money than you owe. The bank must agree to this. This hurts your credit, but not as much as a foreclosure.

The most important thing is to call the bank early. Once the legal papers start, you have much fewer choices.

The Bottom Line

The Consumer Financial Protection Bureau says that about 250,000 new families start the foreclosure process every three months in the U.S. This shows that many people go through this. You are not alone in this!

Missing your house payments can start a chain of big problems. However, the process is slower than most people believe. You have choices at almost every step.

The worst thing you can do is stay silent. Call the bank, look at your other options, and if you need help, talk to a housing counselor for free at consumerfinance.gov.