What to Do If You Can't Afford Your Mortgage Payment
Falling behind on mortgage payments can be one of the most stressful experiences a homeowner can face. Whether due to job loss, medical bills, or other unexpected hardships, the fear of losing your home can feel overwhelming. But you’re not alone—and more importantly, you have options.
If you're struggling to make your mortgage payments, here are some practical steps you can take to protect your financial future and possibly stay in your home.
1. Contact Your Lender Immediately
The worst thing you can do is ignore the problem. Most lenders have programs to help borrowers in financial distress—but you have to reach out. Explain your situation honestly and ask about available assistance programs.
Lenders would often rather work with you than go through the lengthy and costly foreclosure process.
2. Explore Loan Modification
A loan modification is when your lender agrees to change the terms of your mortgage to make it more affordable. This could include:
Lowering the interest rate
Extending the loan term
Reducing the principal balance (less common, but possible in hardship cases)
Loan modification can make a permanent difference in your monthly payment and help you stay in your home long-term.
3. Consider Mortgage Forbearance
Forbearance allows you to temporarily pause or reduce your mortgage payments during a period of financial hardship. This is not loan forgiveness—you will still need to repay the missed payments—but it gives you time to get back on your feet.
Key things to know about forbearance:
Terms vary (typically 3 to 12 months)
You may be able to repay missed payments over time or tack them onto the end of your loan
Always ask your lender about the repayment options before entering forbearance.
4. Look Into Refinancing
If your credit is still in good shape and interest rates are low, refinancing might reduce your monthly payments by securing a lower rate or extending the loan term.
Note: Refinancing usually requires a solid credit score and home equity, so it’s not always an option for those in deeper financial distress.
5. Sell the Property Before Foreclosure
If keeping your home isn't realistic, selling it before foreclosure might be the best option. By selling, you can pay off the mortgage and possibly walk away with some equity.
If you owe more than your home is worth, you may consider a short sale, where the lender agrees to accept less than the full amount owed.
6. Consult a Housing Counselor
The U.S. Department of Housing and Urban Development (HUD) offers free or low-cost housing counseling services. Certified counselors can help you understand your options and negotiate with your lender.
You can find a counselor through HUD’s website or by calling 1-800-569-4287.
7. Understand the Foreclosure Timeline
Foreclosure doesn't happen overnight. You typically have several months from the time you miss a payment before foreclosure proceedings begin. Use this time wisely to explore your options and take action.
Final Thoughts
Financial hardship can happen to anyone—but it doesn’t have to mean losing your home. Whether you're eligible for loan modification, forbearance, refinancing, or considering selling, the key is to act early and stay informed.
At [Your Company Name], we're here to guide you through every step of the mortgage process, including tough times. Contact us today to speak with a mortgage specialist who can help you explore your options.