This is What Happens If you Miss a Mortgage Payment in New York

Owning a home in a place like New York is many people’s dream, but sometimes the mortgage payment is too much to stay on top of. If this is sounding familiar, don’t worry. You have options. This is what happens if you miss a mortgage payment in New York.

Your First Missed Payment

The threat of foreclosure is not something any homeowner wants to face. The good news is that one missed payment will not lead to foreclosure. Federal law prevents mortgage lenders from foreclosing on a home until the loan is over 120 days delinquent. That’s 4 months of missed payments.

Your first missed payment won’t lead to foreclosure, but it does come with consequences. There’s typically a 10-15 day grace period for late payments and once it expires and the payment still hasn’t been made, most lenders charge a late fee of 4-6% of the total payment amount. The exact numbers and terms for your loan can be found on the promissory note you signed at closing.

A missed mortgage payment will also have immediate consequences to your credit score. Communicating with your lender when you’re having trouble paying your mortgage can help mitigate these negative consequences.

Your Second Missed Payment 

A lender will likely reach out to you in writing or in person after your second missed payment to talk about loss mitigation options. Loss mitigation is when the lender and borrower work together to try to avoid foreclosure. Depending on your situation, these options may include:

  • Loan modification
  • Forbearance
  • Short sale

In some situations, like unexpected medical bills or temporary job loss, lenders are willing to offer temporary programs that will allow you to keep your house and work out flexible repayment options. Lenders don’t want to go through foreclosure either. If you’re having trouble making payments, it’s a good idea to reach out to the lender to discuss your options.


Lenders will begin foreclosure when you are 120 or more days past due on your mortgage, especially if you haven’t been communicating with them to work out a loss mitigation strategy. Foreclosure is when a bank seizes a home and sells it at auction to recoup their costs. If the house doesn’t sell at auction, the bank takes possession of it. Either way, it doesn’t bode well for the homeowner. Foreclosure has serious consequences on the owners credit score and makes it harder to buy homes in the future. Additionally, owners lose any opportunity to recoup the equity in their home. 

WNY Home Buyers is Here

Worried about missing your mortgage payment in Buffalo, New York? WNY Home Buyers can help! We buy homes in any condition for cash, and can close on any day of your choosing. You can avoid foreclosure and tap into the equity in your home when you sell your home in New York, from Buffalo down to Depew. We offer quick closings, fair offer prices, and no commissions or fees. Contact us today to get your cash offer!

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