How To Get Help With Mortgage Payments

Quick answer

• Contact your mortgage servicer immediately if you anticipate trouble.
• Explore options like forbearance, repayment plans, or loan modifications.
• Understand your rights as a borrower.
• Document all communications with your servicer.
• Seek advice from a HUD-approved housing counselor.
• Be wary of scams offering quick fixes.

Who this is for

• Homeowners who are experiencing temporary or long-term financial hardship.
• Individuals who are struggling to make their monthly mortgage payments.
• Borrowers who want to avoid foreclosure and keep their homes.

What to check first (before you act)

Your Goal and Timeline

What do you want to achieve? Is your hardship temporary (e.g., job loss, medical emergency) or more permanent? Knowing this will guide which solutions are most appropriate. A temporary setback might be best handled with forbearance, while a long-term income reduction might require a loan modification.

Current Cash Flow

Analyze your income and expenses meticulously. Create a detailed budget to understand where your money is going and identify any areas where you might be able to cut back. This will help you determine how much you can realistically afford to pay toward your mortgage moving forward.

Emergency Fund or Safety Buffer

Do you have savings set aside for unexpected expenses? Even a small emergency fund can provide a crucial buffer during difficult times, preventing you from falling behind on your mortgage in the first place. If you don’t have one, prioritizing building one should be a high-level financial goal.

Debt and Interest Rates

List all your outstanding debts, including credit cards, auto loans, and personal loans, along with their interest rates. High-interest debt can significantly strain your budget. Understanding this landscape is crucial for prioritizing payments and negotiating with your mortgage servicer.

Credit Impact

Falling behind on mortgage payments can significantly damage your credit score, making it harder to secure future loans or even rent an apartment. Understanding this potential impact reinforces the urgency of addressing the issue proactively.

Step-by-step (simple workflow)

Step 1: Assess Your Financial Situation

What to do: Gather all your financial documents, including income statements, bills, and loan statements. Create a realistic budget.
What “good” looks like: You have a clear understanding of your income, expenses, and how much you can afford to pay each month.
Common mistake: Not being honest about your spending or overestimating your future income. Avoid this by tracking every dollar for at least a month.

Step 2: Contact Your Mortgage Servicer Immediately

What to do: Call your mortgage servicer as soon as you realize you might miss a payment or are already behind.
What “good” looks like: You’re speaking with a representative who understands your situation and can explain available options.
Common mistake: Waiting until you’ve missed multiple payments. This limits your options and increases the risk of foreclosure.

Step 3: Explain Your Hardship

What to do: Clearly and calmly explain the reason for your financial difficulty. Be prepared to provide documentation if requested.
What “good” looks like: The servicer understands the cause of your hardship and is willing to work with you.
Common mistake: Being vague or emotional. Stick to the facts of your situation.

Step 4: Inquire About Available Programs

What to do: Ask about specific programs like forbearance, repayment plans, loan modifications, or a short sale.
What “good” looks like: You understand the basic terms and requirements of each program offered.
Common mistake: Not asking enough questions. Ensure you know how each program works and what it entails for your loan.

Step 5: Understand Forbearance

What to do: If offered forbearance, clarify how much time it provides, whether payments are deferred or waived, and what happens at the end of the forbearance period.
What “good” looks like: You know exactly how much you’ll owe at the end of forbearance and have a plan to repay it.
Common mistake: Assuming forbearance means your debt disappears. It’s a temporary pause, and you’ll still owe the missed payments.

Step 6: Explore Repayment Plans

What to do: If your hardship is temporary, a repayment plan might allow you to catch up on missed payments over time, in addition to your regular monthly payment.
What “good” looks like: The plan is affordable within your current budget.
Common mistake: Agreeing to a plan that’s too aggressive and you can’t sustain.

Step 7: Consider Loan Modifications

What to do: If your hardship is long-term, a loan modification can permanently change your loan terms (e.g., interest rate, loan term, principal balance) to make payments more affordable.
What “good” looks like: The modified loan results in a sustainable monthly payment.
Common mistake: Not understanding the long-term implications of a modification, such as a longer loan term increasing total interest paid.

Step 8: Document Everything

What to do: Keep copies of all correspondence, agreements, and notes from phone calls.
What “good” looks like: You have a complete record of your interactions and agreements with your servicer.
Common mistake: Relying solely on verbal agreements. Always get important terms in writing.

Step 9: Seek Professional Advice

What to do: Contact a HUD-approved housing counselor for free or low-cost assistance.
What “good” looks like: You have an impartial expert reviewing your situation and helping you navigate options.
Common mistake: Not seeking advice until it’s too late, or relying on unqualified individuals.

Step 10: Be Wary of Scams

What to do: Be suspicious of companies that guarantee foreclosure avoidance or charge large upfront fees.
What “good” looks like: You’re working directly with your servicer or a reputable, government-approved agency.
Common mistake: Falling for promises of quick fixes that require you to pay significant fees.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Waiting too long to contact the servicer	Limited options, higher risk of foreclosure, significant credit damage	Contact your servicer as soon as you foresee difficulty.
Not understanding forbearance terms	Unexpected large lump sum payment due, inability to repay	Clarify deferral vs. waiver and repayment obligations at the end of forbearance.
Agreeing to an unaffordable repayment plan	Defaulting again, further credit damage, potential foreclosure	Create a realistic budget and ensure the plan fits your finances.
Not documenting communications	Disputes over agreements, inability to prove what was discussed	Keep copies of all letters, emails, and detailed notes of phone calls.
Falling for foreclosure rescue scams	Loss of money, loss of home, further financial distress	Only work with your servicer or HUD-approved counselors.
Not seeking professional advice	Missing out on optimal solutions, making poor decisions	Consult a HUD-approved housing counselor for free guidance.
Assuming missed payments disappear	Large balance due at end of forbearance or modification, potential default	Understand that missed payments must be repaid.
Not understanding loan modification terms	Higher total interest paid over the life of the loan, still unaffordable payments	Carefully review all terms and ensure the new payment is sustainable.
Providing incomplete or inaccurate financial information	Ineligibility for programs, delays in processing	Be honest and thorough when providing financial details.
Not understanding your borrower rights	Being taken advantage of by servicers or scam artists	Familiarize yourself with consumer protection laws.

Decision rules (simple if/then)

• If your financial hardship is temporary (e.g., 1-3 months), then forbearance or a short-term repayment plan might be your best option because they provide a pause without permanently altering your loan.
• If your financial hardship is long-term (e.g., permanent job loss, disability), then a loan modification is likely a better choice because it permanently adjusts your loan terms to a more affordable level.
• If you have significant equity in your home and a temporary hardship, then exploring options like a home equity line of credit (HELOC) to cover immediate needs might be considered, but proceed with caution due to increased debt.
• If you are unable to afford even a modified payment, then a short sale or deed-in-lieu of foreclosure might be necessary to avoid a full foreclosure and mitigate credit damage.
• If you have high-interest debt elsewhere, then prioritizing paying that down might be more beneficial than aggressively paying extra on your mortgage during a hardship, unless a specific loan modification requires it.
• If you are unsure about your servicer’s offers, then contact a HUD-approved housing counselor because they provide free, unbiased advice.
• If your servicer is unresponsive or uncooperative, then consider filing a complaint with the Consumer Financial Protection Bureau (CFPB) because they can intervene on your behalf.
• If you are considering bankruptcy, then consult with a bankruptcy attorney because it can impact your mortgage and other debts significantly.
• If you have a history of consistent on-time payments before the hardship, then your servicer may be more willing to work with you on a favorable solution because it indicates a good borrower profile.
• If your hardship is due to a natural disaster, then look for specific disaster relief programs offered by the government or your servicer because these can provide unique assistance.

FAQ

What is mortgage forbearance?

Forbearance allows you to temporarily reduce or pause your mortgage payments for a specific period. You will still owe the missed payments, which may need to be repaid in a lump sum, through a repayment plan, or added to your loan balance.

How do I know if I qualify for help?

Qualification depends on the specific program and your circumstances. Generally, you need to demonstrate a financial hardship (e.g., job loss, illness, divorce) and communicate proactively with your mortgage servicer.

What is a loan modification?

A loan modification is a permanent change to one or more terms of your original loan agreement. This could include lowering your interest rate, extending the loan term, or even reducing the principal balance to make your monthly payments more affordable.

Can my mortgage servicer deny me help?

While servicers are required to consider certain loss mitigation options, they are not obligated to offer every program to every borrower. However, they must follow specific procedures and provide you with information about available options.

What is a HUD-approved housing counselor?

These are non-profit organizations approved by the Department of Housing and Urban Development (HUD) that offer free or low-cost advice on managing your mortgage, avoiding foreclosure, and understanding your options.

How does missing mortgage payments affect my credit?

Missing payments will negatively impact your credit score, especially if you fall 30 days or more behind. This can make it harder to get loans, credit cards, or even rent an apartment in the future.

What’s the difference between forbearance and a repayment plan?

Forbearance is a temporary pause or reduction in payments. A repayment plan is an agreement to pay back missed payments over time, usually in addition to your regular monthly payment, once the hardship has ended.

Should I pay a company to help me with my mortgage?

Be very cautious. Many legitimate organizations, like HUD-approved counselors, offer free assistance. Avoid companies that charge high upfront fees or guarantee foreclosure avoidance, as they may be scams.

What this page does NOT cover (and where to go next)

• Specific legal advice for your situation. Consult a real estate attorney.
• Detailed tax implications of mortgage assistance programs. Consult a tax professional.
• Investment advice related to home equity or selling your home. Explore investment resources.
• Information on bankruptcy proceedings. Consult a bankruptcy attorney.
• Specific details on government-backed loan programs (e.g., FHA, VA) beyond general principles. Review official government program guidelines.