What To Do When You’re 60 Days Late On Your Mortgage

Being 60 days late on your mortgage is urgent, but it does not mean you have automatically lost your home. At this point, you are usually two full payments behind, late fees may be growing, your credit may already be affected, and your mortgage servicer may be increasing collection and loss mitigation outreach.

The most important thing to do now is contact your mortgage servicer, confirm exactly what you owe, ask whether foreclosure has started, and apply for help before the situation reaches deeper delinquency.

For many mortgage loans, the legal foreclosure process generally cannot start until you are more than 120 days delinquent, but you should not wait until then. The Consumer Financial Protection Bureau explains that foreclosure usually cannot begin until a borrower is at least 120 days behind, with limited exceptions. (Consumer Financial Protection Bureau)

What Does 60 Days Late Mean?

Being 60 days late usually means you have missed two mortgage payments or one full payment has remained unpaid for about two billing cycles.

For example, if your May payment was due on May 1 and you still have not paid by the end of June, your loan may be considered around 60 days delinquent.

At this point, you may face:

• Multiple late fees
• Credit damage
• Servicer collection calls
• Written delinquency notices
• Loss mitigation paperwork
• Difficulty refinancing
• Pressure from the next payment coming due
• Increased risk of foreclosure if no action is taken

A 60-day delinquency is a warning that the problem is becoming more serious. The goal is to stop it from turning into 90 or 120 days late.

Will Foreclosure Start At 60 Days Late?

In most standard missed-payment situations, foreclosure usually has not legally started at 60 days late. Federal mortgage servicing rules generally prevent a servicer from making the first foreclosure notice or filing until the borrower is more than 120 days delinquent, although there are limited exceptions. (Consumer Financial Protection Bureau)

That does not mean nothing is happening. Your servicer may already be calling, sending notices, reviewing your account, and warning you about possible foreclosure if the delinquency is not resolved.

The CFPB says mortgage servicers generally must try to make live contact with delinquent borrowers by the 36th day of delinquency and provide written information about possible loss mitigation options by the 45th day. (Consumer Financial Protection Bureau)

So by 60 days late, you should assume your lender is already tracking the account closely.

Step 1: Call Your Mortgage Servicer Today

Your mortgage servicer is the company that collects your mortgage payments. This may not be the same company that originally gave you the loan.

Call the number on your mortgage statement or online account. Ask for the loss mitigation department or home retention department.

You can say:

“I am 60 days late on my mortgage and want to avoid falling further behind. I need to know the exact amount owed, whether foreclosure has started, and what options are available to help me keep or sell the home.”

The CFPB recommends contacting your mortgage servicer right away if you cannot pay your mortgage or are worried about missing a payment. It also recommends contacting a HUD-approved housing counseling agency for free help avoiding foreclosure. (Consumer Financial Protection Bureau)

Step 2: Confirm The Exact Amount You Owe

Do not rely on memory or rough estimates. At 60 days late, your balance may include more than two missed payments.

Ask your servicer for:

• Total amount past due
• Late fees
• Returned payment fees, if any
• Escrow shortage, if any
• Legal fees, if any
• Reinstatement amount
• Full payoff amount
• Next payment due date
• Whether the loan has been referred to foreclosure
• Whether a foreclosure sale date exists

The reinstatement amount is what you need to pay to bring the loan current. The payoff amount is what must be paid to fully satisfy the mortgage, usually through a sale, refinance, or full payoff.

Ask for these figures in writing.

Step 3: Ask Whether Foreclosure Has Started

Even though foreclosure usually cannot begin until later in many cases, you should still ask directly.

Ask:

“Has my loan been referred to foreclosure?”

Then ask:

“Has any foreclosure notice, filing, or sale date been scheduled?”

Do not accept vague answers like “not yet” or “it is pending” without clarification. You need to know your exact status.

If the servicer says foreclosure has not started, ask what deadline you have before the account may be referred. If the servicer says foreclosure has started, ask for the foreclosure attorney, trustee, sale date, and written confirmation.

Step 4: Decide Whether You Can Catch Up

Before choosing a solution, look honestly at your finances.

Ask yourself:

• Can I pay the full past-due amount now?
• Can I afford my regular payment going forward?
• Can I afford my regular payment plus extra each month?
• Was this a temporary hardship or a long-term income problem?
• Is the home still affordable?
• Do I have equity?
• Would selling be smarter than trying to keep the house?

If your hardship is over and you can afford payments again, catching up may be realistic. If your income has permanently changed, you may need a longer-term option.

Step 5: Ask About A Repayment Plan

A repayment plan may help if you can afford your normal monthly mortgage payment plus an extra amount to catch up on the missed payments.

For example, if you are $4,000 behind, your servicer may allow you to spread that amount over several months. During that time, you would pay your regular mortgage payment plus a catch-up amount.

A repayment plan may work if:

• Your income has recovered
• You can afford more than the regular payment temporarily
• You want to keep the home
• The delinquency is manageable
• You can stick to the plan

Before agreeing, ask:

• What will my monthly payment be?
• How long will the plan last?
• Will late fees continue?
• Will the account be reported as delinquent during the plan?
• Will foreclosure activity pause?
• What happens if I miss one repayment plan payment?

Do not agree to a repayment plan just because you feel pressured. If the payment is unrealistic, ask about other options.

Step 6: Ask About Forbearance

Forbearance may temporarily pause or reduce your mortgage payments if your hardship is short-term. This may help if you lost work, had medical expenses, dealt with a temporary emergency, or expect your income to recover soon.

Forbearance does not erase what you owe. The missed payments must still be handled later. The CFPB explains that borrowers in mortgage forbearance still owe the missed or reduced payments after the forbearance period ends. (Consumer Financial Protection Bureau)

Ask your servicer:

• Do I qualify for forbearance?
• How long would it last?
• Will interest continue?
• Will late fees be charged?
• How will payments be reported?
• What happens when forbearance ends?
• Will I owe a lump sum?
• Can missed payments be deferred?
• What documents do I need?

The exit plan is just as important as the forbearance itself.

Step 7: Ask About Payment Deferral

A payment deferral may move missed payments to a later date, such as when you sell, refinance, modify, or pay off the loan. This can help if your hardship is over and you can resume your normal monthly payment but cannot pay the two missed payments all at once.

A deferral may be a good fit if:

• You can restart regular payments
• You cannot afford a lump-sum catch-up payment
• You want to keep the home
• Your loan program allows it
• Your servicer confirms the account can be brought current through deferral

Ask exactly where the missed payments will go, when they must be repaid, and whether your monthly payment will change.

Step 8: Ask About Loan Modification

If the mortgage payment is no longer affordable long-term, ask about a loan modification.

A loan modification changes the terms of your existing mortgage. Depending on the loan and program, it may extend the loan term, adjust the rate, add missed payments to the balance, or otherwise restructure the loan.

This may make sense if:

• Your income has dropped permanently
• Your hardship is not temporary
• You want to keep the home
• You cannot afford a repayment plan
• You need a lower or more manageable payment

Ask whether you need to submit a full loss mitigation application. A complete application can be important because servicers must evaluate borrowers for available foreclosure-avoidance options after a complete application is submitted. (Consumer Financial Protection Bureau)

Step 9: Contact A HUD-Approved Housing Counselor

A HUD-approved housing counselor can help you understand your options, organize paperwork, and communicate with your servicer. HUD says housing counselors can help homeowners understand the law and their options, organize finances, and represent them in lender negotiations when needed. (HUD)

This can be especially helpful at 60 days late because you still may have time to act before the situation reaches the foreclosure stage.

A housing counselor may help you:

• Review your budget
• Understand lender letters
• Complete loss mitigation forms
• Compare repayment, forbearance, deferral, and modification
• Avoid foreclosure rescue scams
• Decide whether selling is realistic
• Prepare questions for your servicer

HUD lists 800-569-4287 as the phone number to find a HUD-approved housing counselor. (HUD)

Step 10: Gather Documents Now

At 60 days late, delays can become expensive. Start gathering documents before your servicer asks for them.

You may need:

• Mortgage statement
• Loan number
• Proof of income
• Bank statements
• Tax returns
• Hardship letter
• Utility bills
• Insurance information
• Property tax records
• HOA statements, if applicable
• Medical bills or hardship proof
• Unemployment or benefit statements
• Divorce or separation paperwork, if relevant
• Budget worksheet
• Notices from your servicer

If your servicer asks for documents, submit them completely and keep proof of submission.

Step 11: Keep A Call Log

Every time you speak with your servicer, write down:

• Date and time
• Phone number called
• Name of representative
• Employee ID, if available
• Department
• What they said
• Documents requested
• Deadlines
• Confirmation numbers
• Next steps

Save emails, letters, upload confirmations, fax receipts, certified mail receipts, and payment confirmations.

Good records can protect you if there is confusion later.

Step 12: Be Careful With Partial Payments

If you are two payments behind, sending one payment may not always bring your account current. Some servicers may accept partial payments, while others may hold funds in a suspense account until enough money is available to complete a full payment.

Before sending money, ask:

• Will this payment be accepted?
• Will it be applied to the loan immediately?
• Will it bring me current?
• Will any money be held in suspense?
• How much do I need to pay to stop further delinquency?
• Can I set up a formal repayment plan?

You want to know exactly how the payment will be applied.

Step 13: Avoid Becoming 90 Days Late

The next major danger point is 90 days late. By then, your credit may be more damaged, your servicer may send more serious notices, and the loan may be moving closer to foreclosure referral.

Your goal at 60 days late is to choose a path quickly:

• Pay the reinstatement amount
• Start a repayment plan
• Enter forbearance
• Request a deferral
• Apply for loan modification
• Sell the home
• Request a short sale if needed
• Discuss deed in lieu if keeping or selling is not possible

Doing nothing is the most dangerous option.

What If You Cannot Afford The Home Anymore?

If your mortgage is no longer affordable, it may be better to face that now rather than falling further behind.

Ask yourself whether keeping the home is realistic. If the payment no longer fits your income, using credit cards, payday loans, or borrowed money to cover the mortgage may only delay the problem.

Selling may be worth considering if:

• You have equity
• You cannot catch up
• Your income has dropped
• The payment is no longer affordable
• You want to avoid foreclosure
• You need to downsize
• You are relocating
• Repairs are unaffordable
• You want a clean financial reset

Selling before foreclosure may help you protect equity and avoid a forced sale.

Can You Sell Your House When You Are 60 Days Late?

Yes, you can often sell your house when you are 60 days late on the mortgage. If the sale price is enough to pay off the mortgage, late fees, closing costs, and other liens, the loan can usually be paid off at closing.

A traditional sale may bring the highest price if you have enough time and the home is in good condition.

A cash sale may be faster if you need certainty, want to sell as-is, or are worried about falling further behind.

Before listing or accepting an offer, ask your servicer for a payoff amount and confirm whether any foreclosure deadlines exist.

What If You Owe More Than The House Is Worth?

If the mortgage payoff is higher than the home’s value, a regular sale may not be enough. In that situation, ask your servicer about a short sale.

A short sale happens when the lender agrees to accept less than the full loan balance from the sale proceeds.

Short sales require lender approval and documentation. Ask whether the remaining balance will be forgiven or whether the lender may pursue a deficiency. Rules vary by state and loan type, so get professional advice before signing.

Should You Refinance At 60 Days Late?

Refinancing while 60 days late is usually difficult. Most refinance lenders want the mortgage to be current and may require a clean recent payment history.

If your goal is to keep the home, ask your current servicer about reinstatement, repayment, deferral, forbearance, or modification first. Refinancing may become more realistic later if you bring the loan current, rebuild payment history, and meet credit and income requirements.

Watch Out For Foreclosure Rescue Scams

Homeowners who are behind on payments are often targeted by scams. Be careful with anyone who promises guaranteed results, asks for upfront fees, tells you to stop contacting your lender, or asks you to sign over the deed.

Warning signs include:

• Guaranteed foreclosure rescue
• Pressure to sign immediately
• Upfront fees for mortgage help
• Instructions to stop talking to your servicer
• Requests to transfer title
• Offers to “take over payments” informally
• Confusing paperwork
• Refusal to put terms in writing
• Discouraging you from speaking with a counselor, attorney, or trusted advisor

A legitimate professional should explain your options clearly and allow you to get independent advice.

Sample Script For Calling Your Servicer

You can say:

“Hello, my name is [Name], and my loan number is [Loan Number]. I am 60 days late on my mortgage and want to avoid foreclosure. My hardship is [brief explanation]. I need to know my total past-due amount, reinstatement amount, payoff amount, foreclosure status, and what loss mitigation options are available.”

Then ask:

“What documents do I need to submit, what are the deadlines, and how can I confirm that my application is complete?”

Before ending the call, ask:

“Can you send me written confirmation of my options, deadlines, and next steps?”

Common Mistakes To Avoid

Avoid these mistakes when you are 60 days late:

• Ignoring calls or letters from your servicer
• Waiting until you are 90 or 120 days late
• Guessing what you owe
• Sending partial payments without asking how they will be applied
• Agreeing to a repayment plan you cannot afford
• Missing document deadlines
• Assuming foreclosure cannot happen
• Assuming foreclosure has already started without confirming
• Paying upfront fees to a foreclosure rescue company
• Signing over your deed without legal advice
• Refusing to consider selling if the home is no longer affordable
• Accepting a cash offer without proof of funds

Final Thoughts

Being 60 days late on your mortgage is serious, but you still may have options. In many cases, foreclosure cannot legally start until you are more than 120 days delinquent, but your servicer may already be sending notices and preparing for the next steps.

Call your mortgage servicer immediately, confirm the exact amount owed, ask whether foreclosure has started, and request available loss mitigation options. A repayment plan, forbearance, payment deferral, loan modification, reinstatement, sale, short sale, or deed in lieu may be available depending on your situation.

The key is to act before the problem reaches 90 or 120 days late. The sooner you respond, the more control you may have over your home, your equity, and your next move.