Falling behind on a mortgage can be stressful, but homeowners may have options before foreclosure is completed. Depending on the situation, mortgage servicers may offer options such as repayment plans, forbearance, loan modifications, or other loss-mitigation solutions.
The most important step is to act early. The Consumer Financial Protection Bureau recommends contacting your mortgage servicer as soon as you know you may have trouble making a payment. HUD-approved housing counselors can also provide foreclosure-prevention counseling at no cost.
Who May Need Foreclosure Prevention Help?
Foreclosure assistance may be useful if you:
- Are behind on your mortgage payments
- Expect to miss a future payment
- Have experienced a job or income loss
- Are dealing with unexpected household expenses
- Have experienced a serious financial hardship
- Have received a foreclosure notice
- Are having trouble communicating with your mortgage servicer
- Are recovering from a disaster that affected your home or income
- Are struggling with mortgage payments, property taxes, insurance, or other housing costs
Eligibility for specific assistance depends on your mortgage, financial situation, location, loan type, and the program involved.
Check What You May Qualify For
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Programs can vary based on your location, income, mortgage situation, and household circumstances.
Types of Foreclosure Prevention Assistance
Loan Modification
A mortgage servicer may be able to change certain terms of your loan to make the payment more manageable. The specific modification options depend on your loan and circumstances.
Repayment Plans
If you have missed payments because of a temporary hardship, your servicer may offer a plan that allows you to catch up over time.
Forbearance
Forbearance may temporarily reduce or pause mortgage payments under certain circumstances. It generally does not erase the missed payments, so ask your servicer how the amounts will be handled afterward.
Homeowner Assistance Programs
The federal Homeowner Assistance Fund was created to help homeowners financially affected by COVID-19 with certain housing-related expenses. State and other participating programs may still have funds available, but the program is scheduled to end in September 2026 or when available funds are exhausted.
HUD-Approved Housing Counseling
HUD-approved housing counselors can help homeowners understand mortgage options, communicate with their servicer, organize financial information, and work through foreclosure-prevention options. This counseling is available at no cost.
Disaster-Related Mortgage Relief
Homeowners affected by a Presidentially Declared Major Disaster Area may have additional protections or mortgage-relief options. For certain FHA-insured mortgages, HUD says disaster-related foreclosure moratoriums and loss-mitigation options may apply.
How Foreclosure Prevention Usually Works
- Contact your mortgage servicer early. Explain why you are having difficulty making payments.
- Ask about loss mitigation. Ask what options may be available for your loan.
- Gather your financial documents. You may need income records, bank statements, expenses, and mortgage information.
- Submit an assistance application if required.
- Work with a housing counselor. A HUD-approved counselor can help you understand the available options.
- Respond quickly to notices. Do not ignore letters, calls, or legal documents related to your mortgage.
- Get legal help when necessary. If foreclosure proceedings have begun or you have received legal papers, consider contacting an attorney or legal-aid organization.
The CFPB says that if you submit a complete loss-mitigation application early enough, your mortgage servicer generally must tell you about the options available to help you avoid foreclosure.