Missed mortgage payment timeline

What happens at each stage and what you should be doing in response.

Days 1-30 — One payment behind

What's happening: Late fee charged (usually $25-$75). Automated reminders from the lender. Sometimes a phone call.

Credit impact: Lender typically reports to credit bureaus after 30 days. Score drops 50-100 points immediately.

What to do: Pay if you can. If you can't, call your lender's hardship line now. Most banks have one. Many will agree to a temporary deferral or modified payment if you call BEFORE the second payment is missed.

Days 30-60 — Two payments behind

What's happening: Formal demand letter from the lender. Account flagged for collection. Possibly a call from a collections officer.

Credit impact: Second missed-payment report compounds the damage. Score drops another 50-80 points.

What to do: This is your last comfortable window. Get a B-tier mortgage broker on the phone TODAY. Talk to a real estate lawyer about your options. Pull a free credit report from Equifax or TransUnion. Make a one-page summary of your situation.

Days 60-90 — Three payments behind

What's happening: Lender prepares to file foreclosure or power-of-sale paperwork. Some send a "Notice of Intent" or "Final Demand" letter. Account moved to legal department.

Credit impact: Severe. Some lenders flag the account in a way that closes off most refinancing options.

What to do: Refinance is still possible with private lenders but rates are higher. Decision window for selling on your own timeline is closing. Consider all three options seriously: refi, sell, or restructure. Get professional opinions in the next 7 days, not the next 7 weeks.

Days 90+ — Foreclosure begins

What's happening: Statement of Claim filed (judicial provinces) or Notice of Sale issued (power-of-sale provinces). Legal fees start adding to your balance. Court timelines start.

What to do: Selling on your timeline is now your best path in most cases. Bankruptcy or consumer proposal pauses the process but damages credit for 6-7 years. Talk to a Licensed Insolvency Trustee for a free consultation on whether that's right for you. The redemption period gives you a final window — but realistically, it requires money.

After the court order

What's happening: Property is listed for sale (power of sale) or set for court-supervised sale (judicial). Statutory redemption period applies in most provinces — typically 30 to 180 days where you can still pay the full amount and recover the property.

What to do: Even now, options exist. A private buyer can sometimes purchase the property and pay off the lender before the forced sale completes. Consult a lawyer immediately.

The math is simple

Every milestone above is a door closing. The earlier you act, the more doors stay open. Most homeowners freeze in the days 30-60 window — exactly when the most options are still available. Don't.