When is my Mortgage Payment LATE?

[shula]

My mortgage coupon book states that my mortgage payment is due on the 1st of the month, and is considered late and late fees apply after the 16th of the month. I made my April payment on the 14th, and have proof of my payment. I got a letter from the mortgage company on the 16th telling me that my payment was due on the 1st and I now owe late fees and this will be reported to the credit bureaus and be reported as a negative against my mortgage payment history. Is my mortgage company correct and can they do this?

 

[seniorjudge]

What does your mortgage and promissory note say about your questions?

 

[shula]

In general terms, is a payment that is not made on the 1st of the month, considered late and will it be reported to the credit bureaus as such? I did not realize that each lender's promiasry notes where different regarding the late payment dates?

 

[patti44556]

The problem you are facing is that your mortgage payment is not getting processed by your mortgage company before or on the 15th day of the month, consequently it was considered late when they processed it. Contact them and see if they can forgive you the late charge so it does not get reported to the bureaus; finally, try to get those payments out on time... Good Luck!

 

[smithgirlmoe]

Most mortgage payments are due on the 1st of the month as a courtesy the mortgage companies give the customer a 15 day grace period before late fees are assesed but the payment is considered late anytime after the first. Don't worry too much though most institutions don't report to the credit bureaus unless you are 30 or more days past due.

 

[lwpat]

Usually it is not a courtesy but mandated by statute that they have to give you a grace period. The letter usually goes out before the 16th and is standard. If you have proof and they charge you the fee, send them a letter with a copy and request it be removed.