What Happens If You Miss Your Mortgage Payments?

What Happens If You Miss Your Mortgage Payments

A Step-by-Step Timeline for Homeowners in Trouble

The Big Picture

When you fall behind on your mortgage, the lender starts a process that can lead to foreclosure if you don’t act. The earlier you respond, the more options you have. Ignoring calls and letters makes things worse. Staying in contact with your lender gives you the best chance to keep your home or get out with the least damage.

0 Days – Missed Payment

Your mortgage payment is due on the 1st. 

Most loans give a 15-day grace period before charging a late fee.

If you don’t pay by the end of the month, the account is officially delinquent.

You may receive: a reminder notice or email from your lender.

30 Days Late

You’ll get late notice in writing. 

A late fee (often 4–6% of the payment) is added.

The lender’s collections team may start calling you.

Credit report: Your mortgage is now reported as 30 days late, which hurts your credit score. 

60 Days Late

You’ll get another notice: “Your account is seriously past due.” 

The lender will call more often. You may also get letters offering loss mitigation options (ways to avoid foreclosure).

Your credit report now shows 60 days late.

Tip: This is the time to ask about repayment plans, forbearance, or loan modification.

90 Days Late

You’re now 90 days delinquent.

Expect stronger collection calls and letters.

The lender may assign a single point of contact in their loss mitigation department.

Your loan is usually sent to the lender’s “default servicing” team.

Credit report shows 90 days late.

The lender may order a “property inspection” – someone drives by, takes pictures, and checks if the home is occupied.

120 Days Late – Legal Action Starts

Federal rules usually stop lenders from filing a foreclosure until you’re 120 days late. At this point, the lender’s attorney may prepare a Notice of Default (NOD) or Lis Pendens (depending on your state).  

Because Georgia is a non-judicial foreclosure state, timelines can move quickly.  Please review the Georgia-specific timeline included at the end of this guide.

You may see:

Certified letters in the mail

Posting on your front door

More visits from inspectors or real estate agents doing a BPO (Broker Price Opinion) to value the home.

The Foreclosure Timeline (After 120 Days)

Notice of Default / Lis Pendens

This is the official start of foreclosure.

 It’s recorded in public records. 

You’ll get a copy by mail and maybe posted on your property.

Notice also may be posted in local newspapers and other places (public notice being given)

Acceleration

The lender can now demand the full balance due, not just the missed payments. (at this point the lender is no longer required to take just payments so “catching up” on your mortgage may no longer be an option. 

Sale Date Set

If no solution is reached, the home is scheduled for auction.

You’ll be notified by mail, posting, and sometimes in the newspaper.

Once this happens you no longer own your home and the new purchaser or possibly the lender now has title to your property. At this time, you will be required to move out. (and may be forcibly removed by eviction)

Common Notices You’ll See

Late Payment Notice: “Your payment is past due. Please pay immediately to avoid fees.”

Demand Letter / Breach Letter: “You are in default. Pay the amount due by [date] or we may accelerate the loan.”

Notice of Default / Lis Pendens: “Foreclosure proceedings have begun.”

Notice of Sale: “Your property will be sold at auction on [date].”

Your Options Along the Way

Catch up on Payments – Bring your loan current

Repayment Plan or Forbearance – Work out a short-term plan with your lender.

Loan Modification – Change the loan terms (lower rate, extend years, add missed payments to balance).

Short Sale – Sell the home for less than owed, with lender approval.

Deed in Lieu – Hand the home back to the lender to avoid foreclosure

Foreclosure – Last resort; you lose the home, and credit damage is severe.

Important Warning

Ignoring letters and calls is the worst thing you can do.

Staying in touch keeps you in control.

Once foreclosure begins, you lose options and the lender decides what happens.

Don’t panic if you see inspectors or agents – it doesn’t mean you’re evicted yet, but it does mean the lender is moving forward.

AVOID SCAMS! – once a foreclosure notice is filed it becomes public record and all the rats will come out trying to take advantage of you. 

Unfortunately, false rescue programs, emergency loans, and firms guaranteeing to stop your foreclosure and save your home will be contacting you by phone and mail and some will even come knock on your door.

Know that most if not all of them are scams to take your money or your property – legitimate businesses don’t work that way.

Upfront fees, promises, guarantees and or signing over your deed are all warning signs.

Do not give anyone any money up front, or sign anything without consulting a reputable real estate attorney first! (If you cannot afford an attorney, contact your local “HUD Housing Counselor” – their services are free and they can help.

Georgia Foreclosure Timeline (Important Differences)

Georgia is a non-judicial foreclosure state, meaning most foreclosures do not go through the court system.

In most cases:

The lender typically sends a formal Demand Letter (also called a Breach Letter) after missed payments.

        If the default is not cured, the lender advertises a Notice of Sale Under Power in the county’s official legal newspaper for four consecutive weeks prior to the foreclosure sale.

        The property can be sold on the first Tuesday of the month at the courthouse

        No court hearing is required before the sale

        The timeline can move quickly once the foreclosure process begins

**Because Georgia does not require a lawsuit in most cases, timelines can be shorter than judicial states. Acting early is critical. **