All it takes is one bout of bad luck, such as a medical emergency, to land you in a financial crisis. This especially rings true for older homeowners living on fixed incomes or working hourly-wage jobs. Fortunately, if you’ve fallen behind on your mortgage payments—or worry you’re about to—you may qualify for assistance that will allow you to stay in your home. 

"Many homeowners don't realize there are several ways to get back on track after a financial setback,” explains Jessica Johnston, NCOA Senior Strategist for Economic Well-Being. “The key is to ask about your options before the situation becomes a crisis."

What should you do if you face a hardship and are unable to make a mortgage payment?

If you’re a homeowner who is facing hardship and worrying about planning for your housing costs, contact your mortgage servicer as soon as you think you have a problem making payments. You may have relief options which can vary based on your loan type and situation. 

Mortgage Relief Options At a Glance

Note: You can find your mortgage servicer's contact information on your monthly mortgage statement or in your coupon book. Or, you can look up your loan servicer using the look up your mortgage servicer by searching the Mortgage Electronic Registration Systems (MERS) website.

Before calling your mortgage servicer, be ready to tell them:

• The reason you can't make your mortgage payment
• Whether your financial situation is temporary or ongoing
• Your income, expenses, and available savings or other financial assets

What types of mortgage relief options are available for homeowners?

If you’ve fallen behind on your mortgage payments or are in danger of doing so, several options may be available to you. Some mortgage relief examples include:

• Forbearance: With this mortgage relief option, you may be able to suspend your mortgage payments or reduce how much you pay for a period of time.1
• Repayment plan: In this type of plan, your lender agrees to let you pay back all missing mortgage payments by a certain date.2
• Loan modification: A loan modification changes the terms of your loan, such as interest rates and how long it will take to pay off the mortgage.3 When you talk to your lender, ask as many questions as you need to make sure you fully know the terms of the help you’re seeking, and what your responsibilities are. 
• Reinstatement: This means paying everything you owe on your mortgage at one time to catch up on missed payments. If you're able to pay the full past-due amount, your mortgage becomes current again, and you can resume making your regular monthly payments.
• Payment deferral: This is a mortgage relief option that lets you move missed mortgage payments to the end of your loan instead of paying them back right away.
• Refinancing: If you're paying your mortgage on time but having trouble affording the monthly payment, refinancing may help lower your costs. Refinancing replaces your current mortgage with a new loan, often with more affordable monthly payments.

Whether you’re under financial stress and want to understand your options or you want to learn how to better manage your finances, the sooner you connect with someone to take action, the better. There are organizations that can help, and most offer assistance free of charge.

What organizations can help if I can't keep up with my mortgage payments?

Try these resources to get help if you're struggling to pay your mortgage:

• Call the Homeowner’s HOPE Hotline at 1-888-995-HOPE (4673), a service which helps homeowners avoid foreclosure.
• Look for a HUD-approved housing counseling agency near you using HUD’s online locator tool.
• For local resources, simply dial 211 on your phone to connect to a hotline which provides information on essential community resources and services including food and clothing banks, shelters, rent assistance, and utility assistance.

211 saved my life. It was below freezing, and I had nowhere to sleep. They helped me find a place to stay and create a plan to get my life back," said a Cleveland 211 client.

Beware of mortgage relief scams

If you're struggling to make your mortgage payments, be cautious of companies that promise to save your home from foreclosure. No one can promise or guarantee modification of a loan or prevention of foreclosure other than your servicer.

While some organizations like the U.S. Department of Housing and Urban Development (HUD) offer legitimate assistance, scammers often target homeowners in financial distress.

Watch for these warning mortgage relief scam warning signs:

• They tell you to stop making your mortgage payments.
• They ask you to pay upfront for foreclosure or mortgage relief services.
• They guarantee they can stop foreclosure or save your home.
• They promise they can change the terms of your mortgage, regardless of your situation.
• They tell you to send your mortgage payment to someone other than your mortgage servicer.
• They ask you to sign over the title to your home or sign documents you don't fully understand.
• They offer a "forensic audit" of your mortgage as a way to stop foreclosure.
• They claim to work with the government or use names, logos, or seals that closely resemble official government agencies. 

Sources

1. Consumer Financial Protection Bureau. What is mortgage forbearance? Oct. 19, 2023. Found on the Internet at https://www.consumerfinance.gov/ask-cfpb/what-is-mortgage-forbearance-en-289

2. Consumer Financial Protection Bureau. My lender or servicer said I could go on a repayment plan. What does that mean? Jan. 2, 2025. Found on the Internet at https://www.consumerfinance.gov/ask-cfpb/my-lender-or-servicer-said-i-could-go-on-a-repayment-plan-what-does-that-mean-en-280

3. Consumer Financial Protection Bureau. What is a mortgage loan modification? Sept. 4, 2020. Found on the Internet at https://www.consumerfinance.gov/ask-cfpb/what-is-a-mortgage-loan-modification-en-269