Behind on Mortgage Payments?
Missing a payment doesn't mean losing your home. Most lenders would rather work with you than foreclose.
How much time do I have?
Foreclosure can't start until you're 120 days behind — that's federal law. This gives you a real window to find help. Current mortgage delinquency data shows FHA delinquency at 11.52% — more than 6x the conventional rate — so if you're struggling, you have a lot of company. Here's what each stage looks like:
What should I do?
Call your servicer
The most common mistake is not calling. Your The company that collects your monthly mortgage payments. This may not be the same company that originally gave you the loan. has a hardship department built for this. Call the number on your statement.
Write down the date, time, person's name, and what they said. Follow up in writing.
Not sure who services your loan? Use the Servicer Report Card to see how they handle borrower issues.
The largest mortgage servicers by complaint volume include Wells Fargo, Bank of America, JPMorgan Chase, Mr. Cooper, Nationstar Mortgage, Shellpoint / NewRez, Freedom Mortgage, PennyMac, Rocket Mortgage, and LoanCare. Each profile includes their CFPB complaint record, loss mitigation contact information, and demand letter templates.
“I'm having trouble making my payment. I'd like to discuss my options. My loan number is [your loan number]. Can you connect me with your loss mitigation department?”
A temporary pause or reduction in your mortgage payments. You still owe the money later, but it gives you time to recover from a hardship.Learn more → temporarily pauses or reduces your payments. It doesn't erase what you owe — you repay later — but it gives you time while your situation improves.
Best for: Short-term problems like job loss, medical bills, or natural disaster.
Must offer 6-month forbearance, up to 12 months. Moving missed payments to the end of your loan instead of requiring a lump sum. Available on most government-backed loans after forbearance. available after.
3-12 months. Payment deferral (no lump sum) available after.
Terms vary. Ask what happens when forbearance ends. Get it in writing.
Ask before you accept: "What are the repayment terms when this ends?" Some plans require a A large lump-sum payment due at the end of a loan or forbearance period. Ask your servicer about alternatives like payment deferral. — a lump sum. FHA and Fannie/Freddie allow Moving missed payments to the end of your loan instead of requiring a lump sum. Available on most government-backed loans after forbearance. instead — missed payments move to the end of your loan.
Yes — this is often the single most useful step. A housing counselor approved by the U.S. Department of Housing and Urban Development. They provide free help with mortgage problems and can negotiate with your lender.s:
- Review your full finances and explain your options
- Call your servicer on your behalf — they often get faster results
- Help prepare your The process of working with your lender to find an alternative to foreclosure. Includes options like forbearance, loan modification, and short sale.Learn more → application
- Know local programs your servicer won't mention
- Are completely free — funded by HUD
Find one near you or call 1-800-569-4287.
If the problem isn't temporary, forbearance may not be enough. A A permanent change to your mortgage terms — such as a lower interest rate or longer repayment period — to make payments more affordable.Learn more → permanently changes your mortgage — lower rate, longer term, or reduced balance — to make payments fit your new income.
How to apply: Ask your servicer for a "loss mitigation application." You'll need:
- A A letter you write to your lender explaining why you can't make payments — job loss, medical emergency, divorce — and requesting help.Learn more → explaining your situation — use our free generator
- Proof of income (pay stubs, benefits letters)
- Bank statements (last 2-3 months)
- Recent tax returns
A HUD counselor can help you prepare this. Use the Document Tracker to keep everything organized as you submit.
- Rate reduction — lower interest rate, lower payment
- Term extension — spread payments over 40 years instead of 30
- Principal deferral — some balance moved to end of loan
- Principal reduction — balance actually lowered (rare)
- Capitalization — missed payments rolled into new balance
Federal money for mortgage assistance. Many states still distributing funds in 2026. Check your state housing finance agency.
Every state runs emergency mortgage help, refinancing programs, and counselor networks. Search "[your state] housing finance agency."
Food assistance and utility bill help can free up money for mortgage payments. Apply at benefits.gov or call 211 for local emergency resources.
Free legal help for homeowners. Find legal aid near you or visit lawhelp.org.
DOJ-approved nonprofit counselors can help you build a budget and negotiate with creditors. Find a credit counselor or call the NFCC at 1-800-388-2227.
When money is tight, not all debts are equal. Mortgage debt is secured by your home — other debts usually aren't.
- Mortgage (even partial)
- Utilities (electricity, heat)
- Essential food and medication
- Credit cards (minimum or skip)
- Auto loan (if not needed for work)
- Subscriptions
- Medical bill hardship plans
- Student loan income-driven repayment
- Utility assistance programs
If your servicer has denied help or isn't responding, escalate:
- Send a formal letter. You can send your servicer a Qualified Written Request or Notice of Error — they're legally required to respond within 30 days. See our demand letter templates on any servicer page.
- File a CFPB complaint at consumerfinance.gov/complaint. Your servicer must respond within 15 days.
- Look up your servicer's complaint record at americandefault.org/servicers to see how they've handled other borrowers' complaints.
- Contact your state attorney general. Many have mortgage relief hotlines.
- Talk to an attorney. Free legal aid: lawhelp.org.
- Consider A bankruptcy that lets you catch up on missed mortgage payments over 3-5 years while keeping your home. Stops foreclosure immediately. bankruptcy — filing triggers an A legal order that immediately stops foreclosure, debt collection, and lawsuits when you file for bankruptcy. Takes effect the moment you file.Learn more → that stops foreclosure immediately.
For a full guide: How to Stop Foreclosure. Use the Foreclosure Timeline Calculator to see how much time you have in your state.
What documents do I need?
If you apply for A temporary pause or reduction in your mortgage payments. You still owe the money later, but it gives you time to recover from a hardship.Learn more →, a A permanent change to your mortgage terms — such as a lower interest rate or longer repayment period — to make payments more affordable.Learn more →, or any The process of working with your lender to find an alternative to foreclosure. Includes options like forbearance, loan modification, and short sale.Learn more → program, you will need these documents. Gather them before you call. Print this list and check items off as you go.
Loss Mitigation Document Checklist
Gather these before contacting your servicer. Missing documents are the #1 reason applications are denied.
- Hardship letter — 1-2 pages explaining what happened, when it started, and how you plan to recover. Use our free generator Be specific: job loss, medical bills, divorce, hours cut. Say what you are asking for.
- Pay stubs — last 2-3 months from all income sources Include every household earner on the mortgage.
- Bank statements — last 2-3 months, all accounts, all pages Checking, savings, and any investment accounts. Do not black out transactions.
- Most recent federal tax return — all pages including schedules Last 2 years if you are self-employed.
- W-2s or 1099s — last 2 years
- Proof of other income Social Security, disability, unemployment, pension, child support, alimony, rental income.
- Most recent mortgage statement Shows your loan number, balance, payment amount, and servicer contact info.
- Monthly expense list Rent/mortgage, utilities, food, insurance, transportation, medical, childcare, minimum debt payments.
- Property tax bill — most recent
- Homeowners insurance declaration page Shows coverage amount and annual premium.
- HOA or condo fee statements If applicable. Include any past-due amounts.
- Divorce decree or separation agreement If applicable. Includes child support or alimony obligations.
- Medical documentation If your hardship is medical. Hospital bills, disability determination, or doctor's letter.
What should I avoid?
Common questions
A missed payment will lower your score, but the damage is fixable. The bigger risk is letting it deepen into foreclosure, which stays on your report for 7 years. Focus on stopping foreclosure, not the short-term score hit. You can check your reports for free at AnnualCreditReport.com.
Yes — and you should. Start the application before forbearance ends. Federal law says your servicer must review it before taking any foreclosure action.
Ask for the denial in writing with the specific reason. Many denials are about paperwork, not eligibility. Reapply with corrected documents. A HUD counselor or attorney can review whether the denial was proper.
Federal law requires a decision within 30 days of a complete application. If your servicer misses this deadline, they generally can't start foreclosure while it's still pending.
If your home is worth more than you owe, selling is usually better than foreclosure — you pay off the mortgage and keep the rest. If you owe more than it's worth, a Selling your home for less than you owe on the mortgage, with the lender's approval. Less damaging to your credit than foreclosure.Learn more → may be an option. Read the short sale guide.
Frequently Asked Questions
Will missing a mortgage payment ruin my credit?
A missed payment will lower your score, but the damage is fixable. The bigger risk is letting it deepen into foreclosure, which stays on your report for 7 years. You can check your reports for free at AnnualCreditReport.com.
Can I apply for a loan modification during forbearance?
Yes — and you should. Start the application before forbearance ends. Federal law says your servicer must review it before taking any foreclosure action.
My servicer says I don't qualify. Now what?
Ask for the denial in writing with the specific reason. Many denials are about paperwork, not eligibility. Reapply with corrected documents. A HUD counselor or attorney can review whether the denial was proper.
How long does a loan modification take?
Federal law requires a decision within 30 days of a complete application. If your servicer misses this deadline, they generally can't start foreclosure while it's still pending.
Should I sell the house instead?
If your home is worth more than you owe, selling is usually better than foreclosure — you pay off the mortgage and keep the rest. If you owe more than it's worth, a short sale may be an option.
Protect yourself from scams
People in financial distress are prime targets for fraud. Know these rules:
Report fraud: CFPB · FTC · your state attorney general's office.
Is this happening to you?
Are you worried about making next month's mortgage payment?
The Data Behind This
The American Distress Index tracks household financial distress across five dimensions — including FHA delinquency (11.52%, over 6x the conventional rate), debt service ratios, and mortgage debt burden. Research shows savings depletion leads debt problems by about 9 quarters — the pattern that preceded the 2008 crisis is emerging again.
View the American Distress Index | The FHA Signal: 11.52% and Climbing | Financial Hardship Statistics | Check Your Exposure