Keeping up with a mortgage payment can become difficult after a job loss, reduction in income, unexpected expenses, medical costs, or another financial hardship.
If you are struggling to make your mortgage payments, there may be options that can help you avoid falling further behind or reduce the immediate financial pressure. Depending on your loan and circumstances, assistance may come through your mortgage servicer, state programs, federal programs, or housing counseling services.
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.
Who May Qualify for Mortgage Assistance?
Mortgage assistance programs can have different requirements. Potential help may be available to homeowners who:
- Are struggling to make monthly mortgage payments
- Have fallen behind on payments
- Experienced a job loss or reduction in income
- Had unexpected medical or family expenses
- Experienced a financial hardship
- Were affected by a natural disaster
- Are at risk of foreclosure
- Have certain government-backed mortgages
- Qualify for state or local homeowner assistance
Eligibility depends on the specific program, mortgage, lender or servicer, location, and financial circumstances.
Check What You May Qualify For
If mortgage payments have become difficult to manage, you may have options that are worth exploring before the situation becomes more serious.
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Programs vary based on your mortgage, location, income, and financial hardship.
Types of Help With Mortgage Payments
Mortgage Assistance Programs
Some state programs may provide assistance to eligible homeowners experiencing financial hardship. The Homeowner Assistance Fund, for example, has provided assistance for eligible homeowners with expenses such as past-due mortgage payments, property taxes, insurance, utilities, and certain home repairs, although availability and requirements vary by state and program.
Mortgage Forbearance
Forbearance may temporarily pause or reduce mortgage payments during a financial hardship. However, the missed or reduced amount generally still has to be repaid later.
Repayment Plans
A repayment plan may allow you to gradually catch up on missed payments by adding part of the overdue amount to your regular monthly payment.
Loan Modification
Depending on your circumstances and loan, your servicer may offer a loan modification that changes certain terms of the mortgage to make payments more manageable.
FHA Loss Mitigation
Homeowners with FHA-insured mortgages may have access to specific loss-mitigation options designed to help borrowers experiencing financial hardship remain current or avoid foreclosure.
Housing Counseling
HUD-approved housing counselors can help homeowners understand available mortgage assistance options and work with their mortgage servicer. This assistance is available at no cost.
How to Get Help With Mortgage Payments
- Contact your mortgage servicer. The phone number is usually listed on your monthly mortgage statement.
- Explain your financial hardship. Tell the servicer why you are having difficulty making payments.
- Ask about hardship and loss-mitigation options. Options may include forbearance, repayment plans, or loan modification.
- Check whether your mortgage is government-backed. FHA, USDA, VA, Fannie Mae, and Freddie Mac loans may have specific assistance options.
- Check state homeowner assistance. Some states may have programs for eligible homeowners.
- Contact a HUD-approved housing counselor. A counselor can help you understand your options and communicate with your mortgage company.
- Keep records. Save applications, letters, payment records, and communications with your servicer.