Facing Foreclosure?
You have more time and more options than you think. This guide explains what's happening and what to do — in plain English.
What's your situation right now?
Not sure where to start?
Answer a few questions. We'll point you to the right guide.
What is foreclosure?
Foreclosure is the legal process a lender uses to take back your home when you stop making payments. It does not happen fast. In most states, it takes months — sometimes over a year.
There are multiple points where you can act to stop it or slow it down. The earlier you act, the more options you have.
What happens during foreclosure?
Every state has its own rules, but foreclosure follows the same general steps. Read the full walkthrough.
Your lender can't start foreclosure until you're 120 days behind. That's federal law.
After 120 days, the lender files a formal A formal notice from your lender that you have fallen behind on payments and foreclosure may begin. This is a required step in most states.Learn more →. You'll get this by mail.
You have 30 to 120+ days to apply for 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 →, arrange 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 →, or pay what you owe.
If nothing is resolved, the home is sold at auction. The lender often buys it back.
Some states give you a A window of time after a foreclosure sale where you can reclaim your home by paying the full amount owed. Available in some states. to reclaim the home. Others don't.
What are my rights?
Federal and state laws protect you during foreclosure. Read the full rights guide.
No. Federal law says your lender must wait at least 120 days after your first missed payment. During that time, they're required to tell you about options to avoid foreclosure.
If you submit a complete 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 more than 37 days before a scheduled sale, the lender must review it first. They can't foreclose while your application is pending. This is called the When a lender pursues foreclosure at the same time you're being reviewed for help. Federal law prohibits this once you submit a complete application.Learn more → ban.
Yes. Most states give you the right to Paying all missed mortgage payments plus fees to bring your loan current and stop the foreclosure process.Learn more → — paying all missed payments plus fees to bring your loan current. The deadline varies by state.
Many states also have a A legal right in many states requiring lenders to give you a set number of days to catch up on missed payments before starting foreclosure.Learn more → — a required notice period to fix the problem before foreclosure starts.
Yes — immediately. Filing for bankruptcy 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 halts foreclosure. A bankruptcy that lets you catch up on missed mortgage payments over 3-5 years while keeping your home. Stops foreclosure immediately. lets you catch up on missed payments over 3-5 years while keeping your home. Learn more about bankruptcy.
What can I do right now?
Call a HUD counselor (free)
They review your finances, explain your options, and negotiate with your lender — at no cost. They often get better results than calling on your own.
Call the number on your mortgage statement. Ask to speak with the The process of working with your lender to find an alternative to foreclosure. Includes options like forbearance, loan modification, and short sale.Learn more → department. Have your loan number ready.
“I'm having trouble making my mortgage payment. I'd like to talk about my options. My loan number is [your loan number]. Can you connect me with your loss mitigation department?”
Not all servicers handle distressed borrowers the same way. We track CFPB complaint records, response rates, and enforcement actions for the 76 largest mortgage servicers. The most-complained-about include Wells Fargo, Ocwen / Onity Group, Select Portfolio Servicing, Specialized Loan Servicing, Carrington Mortgage, and Fay Servicing. Several have faced CFPB enforcement actions for servicing violations.
Use the Servicer Report Card to look up your servicer, or browse the full servicer directory.
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 → is a temporary pause or reduction in 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 emergency, or natural disaster.
Ask before you accept: "What are the repayment terms when forbearance 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.. FHA and Fannie/Freddie plans 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.
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 terms — lower rate, longer term, or reduced balance — to make payments affordable. Best for long-term income changes.
To apply: ask your The company that collects your monthly mortgage payments. This may not be the same company that originally gave you the loan. 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 → (use our free generator), income documents, bank statements, and tax returns. The Financial Worksheet can help you organize your budget.
If you owe more than your home is 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 → lets you sell for less with the lender's approval. It hurts your credit less than foreclosure and may avoid a A court order requiring you to pay the difference between what you owed on your mortgage and what the home sold for at auction. Not allowed in all states.Learn more →.
Many foreclosure defense attorneys offer free first meetings. An attorney can check if your lender followed the rules (proper notice, RESPA, no robo-signing). If they didn't, that can delay or stop the foreclosure.
Find free legal aid near you or visit lawhelp.org.
A bankruptcy that lets you catch up on missed mortgage payments over 3-5 years while keeping your home. Stops foreclosure immediately. stops foreclosure right away and lets you repay missed payments over 3-5 years. It's a serious step with long-term credit impact, but it can save a home when other options have failed.
What if my sale date is within 30 days?
- Call a HUD counselor right now at 1-800-569-4287. Tell them your sale date.
- Contact a foreclosure defense attorney today. Find legal aid or visit lawhelp.org.
- File a CFPB complaint if your servicer hasn't reviewed your application: consumerfinance.gov/complaint.
- Ask about 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 the sale immediately.
- Request a sale postponement from the A neutral third party who handles the foreclosure sale in non-judicial foreclosure states. Also manages bankruptcy cases.Learn more → or your lender in writing.
Does my state use courts for foreclosure?
Whether your state requires court involvement changes your timeline and options.
- Lender files a lawsuit in court
- A judge must approve the sale
- Takes 6-18 months or longer
- You can raise defenses in court
- States: FL, NY, NJ, IL, OH, and ~20 others
- Lender follows state rules — no court
- No judge reviews the sale
- Takes 2-6 months
- You must file a separate lawsuit to fight
- States: CA, TX, WA, GA, and ~25 others
What are the rules in my state?
Timelines range from a few weeks to over a year. We've built detailed guides for these states, with more coming.
Should I be worried?
Foreclosure starts before you miss a payment. It starts with the pressure that makes missing a payment feel inevitable. If any of these sound familiar, it may be time to seek help:
- You're using credit cards or retirement savings to cover mortgage payments
- You've missed a payment — or know you'll miss one soon
- Your adjustable rate is about to reset higher
- You owe more than your home is worth
- You've had a job loss, medical emergency, or divorce
- You've gotten a letter from your lender about missed payments
A 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. can help before things reach crisis level.
Frequently Asked Questions
Can my lender foreclose right away?
No. Federal law says your lender must wait at least 120 days after your first missed payment. During that time, they're required to tell you about options to avoid foreclosure.
What if I've applied for help?
If you submit a complete loss mitigation application more than 37 days before a scheduled sale, the lender must review it first. They can't foreclose while your application is pending.
Can I catch up on payments to stop it?
Yes. Most states give you the right to reinstatement — paying all missed payments plus fees to bring your loan current. Many states also have a right to cure — a required notice period to fix the problem before foreclosure starts.
Does bankruptcy stop foreclosure?
Yes — immediately. Filing for bankruptcy triggers an automatic stay that halts foreclosure. Chapter 13 lets you catch up on missed payments over 3-5 years while keeping your home.
What is forbearance?
Forbearance is a temporary pause or reduction in 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 emergency, or natural disaster.
What is a loan modification?
A loan modification permanently changes your mortgage terms — lower rate, longer term, or reduced balance — to make payments affordable. To apply, ask your servicer for a loss mitigation application.
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?
Have you received a notice from your lender or servicer?
Dig deeper
The Bigger Picture
Foreclosure doesn't happen in isolation. The American Distress Index tracks foreclosure filing rates, mortgage delinquency, and early-stage missed payments. When savings run out and costs outpace wages, foreclosures follow. Our research shows savings depletion leads mortgage defaults by about 9 quarters — a pattern now repeating.
See the latest numbers: Foreclosure Statistics 2026 | Mortgage Delinquency 2026.