Losing a job can make it difficult to keep up with monthly mortgage payments. If your income has suddenly decreased, contacting your mortgage servicer as soon as possible can help you understand what assistance may be available.
Depending on your mortgage and financial situation, options may include temporary forbearance, a repayment plan, loan modification, payment deferral, or other loss mitigation programs. Some homeowners may also qualify for state or local assistance. Mortgage relief programs have specific eligibility requirements, and missed payments are not automatically forgiven.
Who May Qualify
Eligibility depends on the mortgage, servicer, location, and nature of the financial hardship. Assistance may be available to homeowners who:
- Recently lost their job
- Experienced a significant reduction in income
- Are temporarily unable to make their regular mortgage payment
- Are already behind on mortgage payments
- Are concerned about missing an upcoming payment
- Have a mortgage backed by FHA, VA, USDA, Fannie Mae, or Freddie Mac
- Meet the requirements of a state or local homeowner assistance program
Losing a job does not automatically qualify you for a particular mortgage relief program. Your mortgage servicer will review your circumstances and determine which options may be available.
Check What You May Qualify For
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Programs vary based on your location, mortgage type, financial hardship, and income.
Types of Mortgage Assistance to Explore After Job Loss
Depending on your circumstances, you may find help through:
- Mortgage forbearance, which can temporarily pause or reduce payments
- Loan modification to change your mortgage terms and make payments more affordable
- Repayment plans that let you catch up on missed payments over time
- Payment deferral, which moves missed payments to a later date
- Homeowner assistance programs, including certain Homeowner Assistance Fund options
- Free HUD-approved housing counseling
What to Do After Losing Your Job
- Contact your mortgage servicer immediately and explain your financial hardship.
- Ask about hardship options such as forbearance, repayment plans, loan modification, or payment deferral.
- Gather your financial information and find out who owns your mortgage, since this can affect available options.
- Apply for assistance if instructed, and consider contacting a HUD-approved housing counselor.
- Keep records of everything, plan for the end of any temporary relief, and act quickly if foreclosure is a concern.
Do not ignore notices from your mortgage company or court. Legal aid may also be available in some circumstances.