penman

When is mortgage payment thirty days late in a 31 day month

Recommended Posts

My mortgage payment for May was due on May1 2007.The month of May has 31 days. If I pay my mortgage on May 31, 2007 does anybody know if it will be current or will it be considered thirty days late and go on my credit report as late for the month of May 2007 because I paid it on the 31st of the month not the 30th.

Thanks for your help.

Penman

Share this post


Link to post
Share on other sites

You'd have to read the fine print in your mortgage agreement to know for sure, but, most mortgages don't really have a "grace" period. If it says May 1, its due May 1. Anything after that is late. And since the only choice they have on the CRs is "not late" and "30 days late", guess which one they choose.

Share this post


Link to post
Share on other sites

For Chase Manhattan Mortgage.....they will not report you 30 days late until you are 35 days past the due date.

Share this post


Link to post
Share on other sites
You'd have to read the fine print in your mortgage agreement to know for sure, but, most mortgages don't really have a "grace" period. If it says May 1, its due May 1. Anything after that is late. And since the only choice they have on the CRs is "not late" and "30 days late", guess which one they choose.

That seems ripe for a lawsuit.

The credit reporting agencies need to report ACCURATE INFORMATION.

Reporting a mortgage is 30 days late when it's only 15 days late is NOT accurate.

Share this post


Link to post
Share on other sites

This has been hot debate, but the bottom line is whatever your mortgage servicer determines as a late payment would apply, usually you have at least 10 days within the due date to make it before they hit you with a late fee. Paying it late and paying it 30 days late are entirely two different things, to avoid having a 30 day late appear on credit I recommend you pay within 30 days of the due date and definitely before you have 2 mortgages payments due at the same time (so in the case of February with 28 days you need to pay February's prior to March rolling around or it will be considered 30 days late on credit).

Share this post


Link to post
Share on other sites
This has been hot debate, but the bottom line is whatever your mortgage servicer determines as a late payment would apply, usually you have at least 10 days within the due date to make it before they hit you with a late fee. Paying it late and paying it 30 days late are entirely two different things, to avoid having a 30 day late appear on credit I recommend you pay within 30 days of the due date and definitely before you have 2 mortgages payments due at the same time (so in the case of February with 28 days you need to pay February's prior to March rolling around or it will be considered 30 days late on credit).

Well, yeah, the late payment fee is whatever rules are in place in each individual contract. I'd have to pay a late fee if my payment were made after the 16th of the month (Day 1-16, no late fee, days 17-28,29,31 would be a late fee).

But if you made Feb's payment on March 1st, then Feb's payment in a 28 day month would be made on the 29th day, within the 30 day late reporting period.

I've not had to try this with my mortgage, and God-willing I won't ever have to, but if I thought I was going to be 30 days late or so, a phone call BEFORE day 30 explaining the situation sometimes helps to avoid getting the credit ding. It certainly can't hurt. Won't always help, but it could.

Share this post


Link to post
Share on other sites

Yeah I agree, call the lender to explain things if you are going to be late, never hurts.

I've had a client argue the February thing before with a credit card and they won with HSBC but the process wasn't fun.

Share this post


Link to post
Share on other sites

Pen

I see credit reports all day long. The answer to you question regarding installment and revolving debt is month to month.

If you miss a month, it shows up 1x30 late on your credit report.

Example on mortgages -

If you miss February payment (28 days), it still shows as 1x30 late.

If you get behind one month, and make the following month - after three months it is considered rolling 30's (until you make the payment you missed).

If you miss two months, it is considered 1x60. Missing three months, it is considered 1x90, four months "" "" 120, five months"" ""150.

After 60 days late, most banks offer a payment plan know as a forebearance. This is the amount you owe, is added to your normal payment.

After 90 days, the bank sends out forecloser paperwork....

After 90 days, you are giving up your home. In most cases the only way to save it at this point is to file bankruptcy.

Point - you never want to be late on your mortgage. You have to wait at least one full year before the lates will not calulated when applying for a new loan. (on A++ loans need to wait 24 months)

My $00.00002

Share this post


Link to post
Share on other sites

If you miss February payment (28 days), it still shows as 1x30 late.

How is that legal? It's NOT 30 days late. It's 28 days late. The mortgage company is reporting inaccurate info and the credit bureaus are reporting inaccurate info.

Share this post


Link to post
Share on other sites

Although that is true.....

You can try to argue this with them and you might get a goodwill change (on a Feb late), but they could simple go 8-) ...... or for every time you paid on the 31st, mark it 30 late and go "back at ya, sweety!"

Share this post


Link to post
Share on other sites
Although that is true.....

You can try to argue this with them and you might get a goodwill change (on a Feb late), but they could simple go 8-) ...... or for every time you paid on the 31st, mark it 30 late and go "back at ya, sweety!"

I'd be fine with a 30 day late on day 31.

No one should accept a 30 day late when it's paid on day 29.

Credit bureaus cannot report inaccurate info. There shouldn't be any wiggle room in that at all.

Share this post


Link to post
Share on other sites
That seems ripe for a lawsuit.

The credit reporting agencies need to report ACCURATE INFORMATION.

Reporting a mortgage is 30 days late when it's only 15 days late is NOT accurate.

Well, I guess if I wanted to argue against that I'd say that 30 days is a "month" and when your payment is due on May 1, then May 2 is a new month whereby they give you approx 30 days (until June 1) to make the next payment.

Share this post


Link to post
Share on other sites
Well, I guess if I wanted to argue against that I'd say that 30 days is a "month" and when your payment is due on May 1, then May 2 is a new month whereby they give you approx 30 days (until June 1) to make the next payment.

Problem with that is 30 days is not a month. You don't get to make up new meanings for words and neither do the cra's or mortgage companies.

30 days is 30 days.

Some months are 28 days. Some are 29 (ever 4 years). Some are 30 and some are 31.

Months vary, but 30 days is ALWAYS 30 days.

Share this post


Link to post
Share on other sites

I think what I'm trying to say is 30 days is defined as a month, or a month is defined as 30 days... generally speaking. I don't think credit reports reporting 60-day lates are literally 60-days. They are 2 "months." I have never once thought "oooh, 60 days.. guess they are talking about Dec 1 to Jan 30." They are talking about Dec 1 to Jan 31... all of Dec and all of Jan, in this example. Just like a 30-day late could simply be all of February. They aren't saying you were late in February and 2 days into March.

Share this post


Link to post
Share on other sites

My bank considers 15 days as being 30 days late. Go Figure? I had a mail snafu just about a year ago where they never received my check. I didn't until they sent me a late notice. I paid right away. Lo and behold, I have a 30 days late on my CR from August 2006.

I called to have this verified. They also stated that not paying by the 15th of the second month would be considered 60 days late and would automatically and immediately be placed in foreclosure status.

Share this post


Link to post
Share on other sites

What about people who pay half of their mortgage on the 1st of the month, and half on the 15th of the month. Their payments are not considered late, and it allows them to pay one extra payment a year reducing their interest payments. I even rented at one time to a large property mngmnt. co. who allowed their tenants to pay by the 15th of the month and it was not considered late.

With some mortgage companies, as long as you pay your mortgage before the 1st of the next month, it is not considered late.

You really have to check with your bank to find out what their particular policy is.

Diehard

Share this post


Link to post
Share on other sites

Everyone,

I'm in the middle of rescoring right now and saw the post about "rolling 30". Is there any way to remove rolling 30's? I have several and would like to change to 1x30.

Any help and instructions on doing this is appreciated. FYI - I was with Countrywide.

Thanks.

Share this post


Link to post
Share on other sites
My bank considers 15 days as being 30 days late. Go Figure? I had a mail snafu just about a year ago where they never received my check. I didn't until they sent me a late notice. I paid right away. Lo and behold, I have a 30 days late on my CR from August 2006.

I called to have this verified. They also stated that not paying by the 15th of the second month would be considered 60 days late and would automatically and immediately be placed in foreclosure status.

You have a legitimate complaint here. Obtain a copy of your mortgage payment history, as well as cancelled checks (front and back). You will then have the ammunition you need to fight this with the mortgage company and the credit bureaus.

Share this post


Link to post
Share on other sites
Guest
This topic is now closed to further replies.