What to Do When You're Behind on Your Mortgage

Foreclosure prevention starts with contacting your lender before you miss a payment

If you are behind on your mortgage or worried you will be, your lender has programs designed to keep you in your home without going to court. These are not new loans or grants — they are changes to the terms of the mortgage you already have. Most lenders offer them because foreclosure costs them money too. The key is reaching out early: once a foreclosure case is filed, your options narrow and the clock starts running.

Your lender's loss mitigation department handles these programs. You can find the phone number on your mortgage statement or in any letter from the lender. Have your loan number and a recent statement ready when you call. Be direct about your situation: how much you are behind, whether the problem is temporary or ongoing, and what you think you can afford going forward. The lender will ask for financial documents — recent pay stubs, tax returns, bank statements — to understand what you can actually pay.

Key Takeaways

• Contact your lender's loss mitigation department before you miss a payment, or as soon as you know you will miss one.
• Loan modification, forbearance, and repayment plans are the three main options, and which one fits depends on whether your problem is temporary or long-term.
• Forbearance pauses or reduces payments for three to twelve months, but you still owe the paused amount — it gets added back later or due at the end.
• A loan modification changes the terms permanently, lowering your monthly payment by extending the loan, reducing the interest rate, or forgiving part of the principal.
• If your lender denies you or you cannot reach them, HUD-approved housing counselors offer free guidance and can sometimes advocate on your behalf.

Forbearance: pausing payments when the hardship is temporary

Forbearance means your lender agrees to let you pay less than your full mortgage payment, or nothing at all, for a set period — usually three to twelve months. It is meant for people whose income has dropped temporarily: a job loss you expect to recover from, a medical emergency, a reduction in hours. During forbearance, interest still accrues, and you are not forgiven the missed payments.

At the end of forbearance, you have to deal with the paused amount. Your lender might add it to the end of your loan, spread it across your remaining payments, or require you to pay it in a lump sum. Some lenders offer a combination: a few months added to the loan term, plus a small increase to your regular payment. Before you accept forbearance, ask your lender in writing what happens when it ends. If you cannot afford the arrangement they propose, forbearance only delays the problem.

Forbearance is not automatic. You have to request it, and your lender can deny it if they believe you will not be able to resume payments. If you are approved, get the agreement in writing before you stop paying. Without documentation, your lender can claim you simply stopped paying and begin foreclosure.

Loan modification: permanently lowering your monthly payment

A loan modification changes the terms of your mortgage itself. Your lender can extend the loan term (stretching payments over 40 years instead of 30), reduce the interest rate, forgive part of what you owe, or some combination of these. The result is a lower monthly payment you can actually afford, and the change is permanent — not temporary like forbearance.

Loan modifications take longer to process than forbearance, often two to four months. Your lender will ask for the same financial documents: proof of income, tax returns, bank statements, and a written explanation of what caused the hardship. They use this to calculate what payment you can sustain. If you are self-employed or your income is irregular, bring several months of bank statements or profit-and-loss statements to show the lender what your actual income looks like.

Not every lender offers modifications, and not every borrower qualifies. Lenders are more likely to modify a loan if you have equity in the home (the house is worth more than you owe) and if the modification costs them less than foreclosure would. If your lender denies modification, ask for the reason in writing. Some denials can be appealed, especially if your financial situation has changed since you first applied.

Repayment plans: catching up over time

A repayment plan lets you add a portion of what you owe to your regular payment until you are caught up. For example, if you are three months behind at $1,500 per month, you might agree to pay $2,000 per month until the arrears are paid. This works only if you have a temporary shortfall and genuinely expect your income to recover.

Repayment plans are faster to set up than modifications — sometimes just a phone call and a written confirmation. But they require you to afford the higher payment immediately. If you cannot pay $2,000 when you are struggling to pay $1,500, a repayment plan will fail and you will be back where you started, now with a broken agreement on your record.

What happens if your lender says no

If your lender denies forbearance, modification, or a repayment plan, you have the right to know why. Federal law requires them to give you a written reason. Common reasons include: your income is too high for the program, your hardship is not considered temporary, or the modification would not reduce your payment enough to matter.

You can ask for reconsideration if your circumstances have changed — a new job, a change in family size, a medical situation that has resolved. Submit new financial documents and a new written explanation. Some lenders have an appeal process; ask whether yours does.

If your lender will not work with you, contact a HUD-approved housing counselor. These counselors are free, and they know the rules lenders have to follow. They can sometimes negotiate on your behalf or help you understand whether the lender's denial was legitimate. To find a counselor, call 1-800-569-4287 or visit HUD's website.

Avoiding scams and predatory "help"

When you are behind on your mortgage, you will see ads for companies that promise to stop foreclosure, negotiate with your lender, or get your loan modified. Many of these are scams. They charge upfront fees (which is illegal for foreclosure prevention services), do nothing your lender would not do for free, or make your situation worse.

Real foreclosure prevention is free or very low-cost. HUD-approved counselors do not charge. Your lender's loss mitigation department does not charge. If someone asks for money before they help you, or promises a may provide outcome, do not work with them. If you have already paid a company and they have not delivered, you may be able to report them to your state's attorney general or the Consumer Financial Protection Bureau.

Timeline and what to expect

The speed of foreclosure varies by state. Some states require the lender to file in court (judicial foreclosure), which takes four to twelve months. Others allow lenders to foreclose without court (non-judicial foreclosure), which can happen in sixty to ninety days. Contacting your lender does not automatically stop foreclosure, but it often does pause it while you work out a solution.

Once you reach your lender, expect the process to take weeks. Forbearance decisions sometimes come in two to three weeks. Loan modifications take longer — six to twelve weeks is common. During this time, keep paying what you can, even if it is less than your full payment. Document every payment and every conversation with your lender. If the lender later claims you did not pay, you will have proof.

Frequently Asked Questions

What if I have already received a foreclosure notice?

Contact your lender immediately. In judicial foreclosure states, you usually have at least thirty days after the notice is filed to respond. In non-judicial states, you have less time. A pending foreclosure does not disqualify you from forbearance or modification, but it does make speed critical. Ask your lender whether they will pause the foreclosure while you work on a solution.

Can I modify my loan if I owe more than the house is worth?

Yes, but it is harder. Lenders are less willing to modify loans where the borrower has no equity. Some programs, like those offered through the Home Affordable Modification Program (HAMP) framework, do modify underwater loans, but approval is not may provide. Ask your lender what programs they offer for borrowers in your situation.

What if I cannot afford any of these options?

Talk to a HUD-approved housing counselor about all your options, including whether selling the home or a short sale (selling for less than you owe) makes sense. Foreclosure is not the only outcome, and a counselor can help you understand the trade-offs of each path.

Do I have to use my lender's program, or can I shop around?

You work with your current lender — the one holding your mortgage. You cannot shop around for a better deal on forbearance or modification. However, you can refinance into a new loan with a different lender if you have equity and your credit is still acceptable, though this is harder if you are already behind.

Will forbearance or modification hurt my credit?

Forbearance and modification do not help your credit, but they are better than foreclosure or a missed payment. If you are already behind, your credit is already damaged. These programs stop further damage and give you time to catch up. Once you are current again, your credit will gradually improve.