Behind on Your Mortgage or Concerned About a Notice You Received?

I want to stay in my home and explore ways to get back on track.

I’m considering selling and want to understand the options available to me.

I’m not sure what makes the most sense and want help understanding my choices.

Start here. Your mortgage servicer is the company you send your mortgage payment to. Tell them you’re having difficulty making payments and ask to speak with the department that handles loss mitigation or mortgage assistance. Ask what programs may be available for your particular loan and what documents you’ll need to apply.

Reinstatement means bringing your mortgage current by paying the amount you’re behind, which may include missed payments and certain allowable fees or costs. If you have access to the necessary funds, ask your servicer for a written reinstatement amount and the deadline for paying it.

A repayment plan may allow you to catch up gradually instead of paying the entire past-due amount at once. Typically, a portion of what you owe is added to your regular monthly mortgage payment for a period of time. Ask your servicer whether a repayment plan is available and what the new temporary payment would be.

These are related, but they’re not the same thing, and I think that’s important to explain. Forbearance may temporarily reduce or pause mortgage payments during a financial hardship; it generally does not erase what you owe. A payment deferral, when available, may move certain past-due amounts to a later point, such as when the loan is paid off, refinanced, or the home is sold. Ask your servicer what happens to any missed amounts afterward.

A loan modification changes one or more terms of your existing mortgage to resolve the delinquency and/or make the payment more manageable. Depending on the applicable program, that could involve changes such as the interest rate, loan term, or treatment of past-due amounts. Your servicer can tell you whether you’re eligible and what financial information is required for review.

This one deserves more explanation. A HUD-approved housing counselor can help you understand your mortgage situation, review possible foreclosure-prevention options, help you prepare to communicate with your servicer, and explain the paperwork or programs you may encounter. Foreclosure-prevention counseling through HUD-approved agencies is generally available at no cost. The counselor doesn’t make the lender’s decision, but they can help you understand and navigate the process. 

For counseling:

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 800-569-4287

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www.hud.gov

List your home with a licensed real estate agent and market it to buyers. This may provide an opportunity to pursue a higher sale price, particularly when there is enough time to properly market the property.

However, consider the net proceeds—not just the sale price. Depending on the transaction, seller expenses may include negotiated real estate agent compensation, seller closing costs, transfer or recording charges, property taxes or assessments, agreed buyer concessions, repairs, inspections, staging or preparation expenses, and mortgage or lien payoffs.

If you’re facing a foreclosure deadline, also consider whether there is enough time to list the property, find a qualified buyer, complete inspections and financing, and close before the applicable deadline.

Selling directly to a buyer may provide a faster and simpler sale without going through the traditional listing process. Depending on the buyer and agreement, you may be able to sell the property as-is without making repairs, staging the home, holding repeated showings, or waiting for a buyer to obtain conventional financing.

The tradeoff is important: a direct buyer may offer less than the price you might potentially receive on the open market in exchange for speed, convenience, certainty, and taking responsibility for repairs or other costs.

Always compare the estimated amount you would actually receive at closing, along with the terms, costs, contingencies, and closing timeline—not simply the advertised offer price.

In some situations, a traditional sale or cash offer may not be the best fit. Depending on your mortgage, equity, timeline, and goals, there may be other ways to structure the sale of your home.

These alternatives can sometimes provide more flexibility when selling, especially when timing, existing financing, or the amount of equity in the property creates challenges.

Every situation is different. The goal is to understand your circumstances first and then determine whether a structured alternative may provide a better solution.

If your home is worth less than the total amount owed against it, your mortgage servicer or loan owner may approve a sale for less than the mortgage balance as an alternative to foreclosure.

A short sale generally requires approval from the mortgage company and may require financial information, documentation of hardship, an executed purchase contract, and review of the proposed sale. Other lienholders may also need to cooperate.

Ask your servicer—in writing where possible—how any remaining mortgage balance will be handled and whether there could be tax or other financial consequences. Consider obtaining appropriate legal or tax advice before agreeing to the final terms.

A deed in lieu may allow an eligible homeowner to voluntarily transfer ownership of the property to the mortgage holder rather than going through a completed foreclosure.

This isn’t simply handing over the keys. The mortgage company must approve the arrangement, may evaluate other liens or claims against the property, and may have requirements concerning the property’s condition or occupancy.

Before agreeing, make sure you understand whether the agreement fully resolves the mortgage debt, what happens to any remaining balance, when you’ll need to leave the property, and how the arrangement could affect your credit or taxes. Legal or tax advice may be appropriate before signing.

Start with the basics. Your mortgage balance, missed payments, available equity, property condition, important deadlines, and whether you would prefer to stay or sell can all affect which options may be available.

Understanding where you stand is the first step toward deciding what to do next.

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Different choices can have different effects on your finances, timeline, credit, equity, and ability to remain in the home.

Comparing the possible outcomes can help you make a more informed decision before choosing a path forward.

Once you understand your situation, you can explore the options that may fit, from ways to keep your home to traditional or alternative ways to sell your home.

You don’t need to know the right answer yet. The goal is to understand your choices so you can decide what makes the most sense for you.