What if you can’t pay your mortgage?

If you find that you cannot pay your mortgage, you may want to reach out to one of the following for help:

Your mortgage loan servicer

If you cannot make your mortgage payment it is important that you reach out immediately to you mortgage loan servicer.  Explain your situation.  Your loan servicer is obligated to share with you your options.

A housing counselor

Meeting with a HUD-approved housing counselor can help you weigh your options and follow through with the plan that is right for you.

Legal Aid

You may be eligible to receive free or reduced cost legal advice regarding your mortgage.

These experts will help you consider your options:

Refinance your mortgage

If you have a mortgage with a high interest rate or other adverse features you may be able to refinance it into a more affordable product.  In order to do so you will have to qualify for this new mortgage based on your current financial situation.

Get a loan modification

If you are current on your mortgage payments but fear that you may become delinquent in the future, you may qualify for a loan modification that will reduce your interest rate and possibly extend the term of your loan.

Workout a replayment plan

If you were subject to a short-term financial crisis that stopped you from making your mortgage payments for a brief time and are now secure financially, your lender may allow you to repay your missed mortgage payments over a set period of time.

Get forbearance

If you are unable to pay your mortgage for a certain period of time, your lender may lower or suspend your mortgage payments for that time while you are working through your financial difficulties.  At the end of the period, your payments will resume along with a payment plan to make up for the missed mortgage payments.

Short-sell your home

If you are unable to pay your mortgage and do not foresee being able to pay your mortgage in the future you lender may allow you to sell your home for less than the mortgage amount.

Give your home back to your lender through a "deed-in-lieu of foreclosure"

If you cannot pay your mortgage and do not foresee being able to pay it in the future you may arrange to relinquish the deed to the lender instead of going through the foreclosure process.