Last updated: March 2026
If you just missed a mortgage payment, don’t panic. Missing one payment is not foreclosure. It’s not even close to foreclosure. But what you do in the coming days and weeks matters enormously. This guide walks you through exactly what happens at each stage, month by month, and what you should do right now to protect your home, your credit, and your options.
What happens after you miss one payment?
Missing your first mortgage payment triggers an automatic 15-day grace period on most loans. During this window, you can make the payment with no penalty or negative credit impact. After 15 days, your lender will typically add a late fee, usually 3-6% of your monthly payment amount. That might be $60-150 on a typical Arizona mortgage.
Your lender will start calling and sending letters, but here’s the critical fact: foreclosure cannot legally begin in Arizona until you are at least 120 days past due on your mortgage (per federal mortgage servicing rules). One missed payment puts you nowhere near that threshold.
- Day 1-15: Grace period, pay now, no consequences
- Day 15-30: Late fee added, credit not yet affected
- Day 30+: Payment is officially “30 days late”, lender reports to credit bureaus. Your credit score may drop 50-100 points.
Action step: If you know you can’t make this month’s payment, call your lender’s loss mitigation department before it’s 30 days late. Early communication keeps your options wider.
What happens after 2 missed payments?
At 60 days past due, your lender steps up collection activity significantly. Expect more frequent calls, written notices, and a second late fee. Your credit score takes another hit, typically an additional 20-40 points on top of the first drop.
You are still not in foreclosure territory. Federal law prohibits lenders from starting the foreclosure process until you’re more than 120 days delinquent. But this is the stage where many lenders will start the conversation about loss mitigation options, meaning they’d rather work something out than foreclose.
- Two late payments reported to credit bureaus, significant credit score drop
- Lender may assign your account to a dedicated collections specialist
- Some lenders begin offering forbearance or repayment plans at this stage
- You still have maximum flexibility to negotiate
Action step: If you haven’t already, call your lender and ask specifically for the “loss mitigation” department. Explain your hardship. Ask what options are available. This call costs nothing and preserves your options.
What happens after 3 missed payments?
At 90 days past due, you enter serious delinquency territory. Your lender will send a formal “Demand Letter” or “Notice of Default” advising that foreclosure proceedings may begin if the account isn’t brought current. In Arizona, this is typically a required step before the lender can proceed to a trustee sale.
This letter is scary to receive. But it’s also a signal, not that you’ve lost, but that the clock is ticking and you need to act. At 90 days, you still have multiple options open, including loan modification, reinstatement, forbearance, or selling before the auction.
- Formal default notice sent or filed
- Foreclosure proceedings may begin, but haven’t happened yet
- Credit score has likely dropped 100-150 points from your pre-default level
- You still have the right to cure the default (catch up on payments)
Action step: Contact a HUD-approved housing counselor immediately (free at 800-569-4287). They can review your situation and connect you with options your lender may not volunteer. Also talk to a direct home buyer if selling is on the table, at this stage, you may still have equity worth protecting.
What happens after 90+ days in Arizona?
Once 120+ days have passed and a formal notice has been filed, Arizona’s non-judicial foreclosure process kicks into gear. Your lender (through a trustee) files a Notice of Trustee Sale with the county recorder’s office. This document sets the auction date, exactly 90 days from the filing date.
This is posted publicly in the county and mailed to you. From this point, you have 90 days to take action before the auction. That’s still meaningful time, but every day you wait, your options narrow.
- Notice of Trustee Sale filed with county recorder, public record
- 90-day countdown to auction begins from filing date
- You can still reinstate the loan (catch up on all arrears) up to 5 days before the sale
- Selling before the auction date is still possible and often the best outcome if you have equity
5 things to do right now if you’re behind on payments
Whatever stage you’re at, here’s your action plan:
- Call your lender today, specifically ask for loss mitigation. Not customer service. Loss mitigation. Tell them you’re experiencing financial hardship and ask what options are available. Most servicers are legally required to evaluate you for alternatives before proceeding with foreclosure.
- Document your hardship. Write a simple hardship letter explaining what happened, job loss, medical bills, divorce, income reduction. Lenders require this for any modification or forbearance request. Be specific about dates and amounts.
- Talk to a HUD-approved counselor, it’s free. These counselors work on your behalf, not the lender’s. They know what options are available and how to navigate the process. Call 800-569-4287 or visit hud.gov.
- Understand your equity position. Look up recent sales of similar homes in your neighborhood. If your home is worth more than what you owe, you have equity, and that equity is worth fighting for. A sale before auction could put real money in your pocket instead of losing everything to foreclosure.
- Talk to a real person who’s helped families in your situation. Not Google. Not Reddit. Someone who works with Arizona families facing foreclosure every day. We offer free, no-pressure calls where we walk through every option, including ones that don’t involve selling to us.
Frequently asked questions
I missed one payment. Will I lose my house?
No. One missed payment starts a process, but foreclosure cannot begin until you are at least 120 days past due. Call your lender now, pay when you can, and stay in communication.
Should I just stop paying to force a loan modification?
This is a dangerous strategy. Deliberately missing payments damages your credit and doesn’t guarantee a modification. If you need a modification, apply directly through your lender’s loss mitigation department.
Can I sell my house if I’m behind on payments?
Yes. Being behind on payments doesn’t affect your ability to sell. If you have equity, a sale before the foreclosure date stops the process, protects your credit, and lets you walk away with money. A cash buyer can close in as little as 2-4 weeks.
What’s the difference between forbearance and a loan modification?
Forbearance is temporary, payments are paused or reduced for a set period, but you’ll need to repay them. A loan modification permanently changes your loan terms. Forbearance is faster to get; modification is better long-term if you qualify.
Does missing a mortgage payment show up on my credit report?
Yes, once you are 30+ days late. A 30-day late payment can drop your score 50-100 points. The impact is greater the better your credit was before. On-time payments going forward rebuild your score over time.
Behind on your mortgage in Arizona? Schedule a free, no-pressure call. We’ll walk through every option available to you, we only recommend selling to us if it’s genuinely the best path for your family. Talk to us today.