30 days past due: Lenders might not notify you of your late pay until the second or third one, but they may contact the credit bureaus and damage your credit score. 90 days and more: Lenders usually file a "notice of default" with a local courthouse and send you a letter that foreclosure will start unless you bring your loan up to date. You might prolong the process if you contact the lender and work something out. A "notice of default" will further damage your credit. Notice of Default: If you received a notice of default and loan modifications or refinance is not an option, it is recommended to list the house with a Realtor and sell. If you have any equity in your home to pay off the mortgage and all closing costs, a quick sale is usually your best option. Deed in lieu of foreclosure: If your house does not sell, your lender may accept this option. You can offer the deed for release of the mortgage. Short Sale Option: You may be able to negotiate the lender to accept less than you owe on the property through a "short sale". This allows you to sell the home for what you can get and the lender agrees to accept the proceeds and not go after you for the deficit. A short sale may cause less damage to your credit as a foreclosure. Foreclosure: To allow the foreclosure is generally the worst choice. The lender may be able to go after you in court for any deficit between what the house sells for and what you owe. A foreclosure definitely damages your credit. Always communicate with your lender to avoid the worst.