It is possible for home buyers with past delinquency history to obtain home financing. Many non-prime banks offer loan programs to home buyers with blemished credit profiles. Borrowers with delinquencies on their credit reports should expect to pay higher interest rates than conforming loan applicants.

It is sometimes necessary to accept a higher interest rate in the short-term and hope to refinance once the financial trouble has passed. A foreclosure will effect your ability to qualify for future mortgage financing more than a bankruptcy.

Once you are delinquent on your mortgage of more than 60 days some lenders can and may start the process of foreclosure. Foreclosure is when you are behind on your mortgage payments and the lender repossess your home from you. Normally the home will be sold through sheriff's auction. Lenders do not like to go through the foreclosure process because it is very costly and time consuming. So if you become delinquent on your mortgage or are about to become delinquent contact your lender to see if there is anything they can do to help you out or work with you to get caught back up.

While having a late payment on anything will certainly hurt your credit score, having a late payments on your mortgage will be viewed much worse than having a late payment on a credit card. The number of delinquent mortgage payments can almost play as large of a factor as your credit score in determining what programs and rates you qualify for.