What happens if a mortgage payment is not made on time?

When a mortgage payment is not made on time, one of the immediate consequences is that late fees may be assessed. Most mortgage contracts include provisions that outline the application of late fees if payment is not received by the due date. These fees serve as a financial penalty to discourage late payments and encourage timely financial management among borrowers.

In contrast, immediate foreclosure is typically not a consequence of a single late payment. Foreclosure processes generally require a borrower to be significantly delinquent on their payments over an extended period. Payment waivers are uncommon in mortgage agreements; lenders typically expect timely payments as part of the contractual obligation. Additionally, a missed payment may have an impact on the borrower's credit score, especially if it is reported after a certain number of days overdue. Therefore, the correct choice reflects a standard practice among lenders to impose late fees for overdue payments, emphasizing the importance of maintaining timely payment schedules to avoid additional charges.