The First Missed Payment

The loan servicer usually allows for a 10 to 15 day grace period on a missed payment and after that, a late fee may apply. Once the grace period expires, the servicer may begin notifying the homeowner through phone, mail or email to find out why the payment has been missed. The homeowner, at this point, can choose to speak with the servicer and explain why they have fallen behind or were unable to pay. Drawing up a loss mitigation plan is important at this stage to stave off further damage.