How to Handle an Overdue Mortgage and Preserve Your Credit Rating

Part of the Credit Repair Kit For Dummies Cheat Sheet

When your mortgage is late, take immediate action to help preserve your credit, which is always much easier to do than repairing damaged credit. If you're having trouble making your mortgage payments, take the following essential steps:

Call your lender or servicer immediately if you're going to be late. The worst thing you can do is nothing. More programs are available to help today than ever before.
Contact a HUD-certified counseling agency for more options. (Go to the Housing and Urban Development Web site or call project HOPE at 888-995-HOPE). A HUD-certified counselor can advise you on options and refer you to local resources that you may not know about.
Don't allow your mortgage to become 90 days past due. Partial payments may not be accepted after 90 days. After you're late, your grace period disappears, so a foreclosure action may be two weeks closer than you think.
Beware of companies who contact you to offer help. Some companies will try to take advantage of your problem by charging high fees for themselves.
Find out your alternatives to foreclosure at the Federal Trade Commission's Web site.