Can’t Pay Your Mortgage? Your Options and Where to Get Free Help
Struggling to make your mortgage payment? You have more options than you might think. Here is a calm, step-by-step guide to forbearance, repayment plans, modifications and free help.
- First step: Call your mortgage servicer (the company you send payments to) as early as you can, ideally before you miss a payment.
- Common options: Forbearance, a repayment plan, a payment deferral, or a loan modification. If keeping the home isn’t possible, there are ways to leave without foreclosure.
- Free help: HUD-approved housing counselors can help you understand options, often at no cost. Call 800-569-4287 or search on HUD’s or the CFPB’s website.
- Time protection: Under federal rules, servicers generally can’t start the first foreclosure filing until you’re more than 120 days behind.
- Avoid scams: Never pay upfront fees for mortgage relief, and never sign over your deed to someone promising to “save” your home.
If you’re reading this because a mortgage payment feels out of reach, you’re not alone, and you’re not out of options. Job loss, illness, divorce, a death in the family, or a sudden big expense can happen to anyone.
The most important thing to know is this: the earlier you act, the more choices you usually have. Below is a calm, step-by-step look at what you can do.
Step 1: Contact your servicer early
Your servicer is the company that collects your monthly payment. Its name and phone number are on your monthly statement. It may not be the same company that gave you the loan.
When you call, it helps to have this ready:
- Your loan number
- A short explanation of what happened and when
- Your current monthly income and expenses
- Recent pay stubs, benefit letters or bank statements
Ask what options are available, what documents they need, and the deadlines. Write down the date, the name of the person you spoke to, and what they said. Send documents in the way they ask, and keep copies.
Federal rules require servicers to try to reach out to you when you fall behind. That includes trying to contact you by the 36th day of a missed payment and sending written information about options by the 45th day.
Your main options, side by side
| Option | What it does | Best for |
|---|---|---|
| Forbearance | Pauses or reduces payments for a set time. You still owe the missed amount. | A short-term setback, like a temporary job loss or medical leave. |
| Repayment plan | Spreads the past-due amount over several months on top of your regular payment. | You can afford your normal payment again plus a little extra. |
| Payment deferral or partial claim | Moves missed payments to the end of the loan, or into a separate, often interest-free balance (for some FHA loans). | You can afford your normal payment but not a lump sum. |
| Loan modification | Permanently changes loan terms, such as the rate, the length, or the balance structure, to lower the payment. | A long-term drop in income. |
| Sell, short sale or deed-in-lieu | Lets you leave the home without going through foreclosure. | When keeping the home no longer works. |
Which options you can get depends on your loan type (conventional, FHA, VA or USDA), who owns your loan, and your situation. Your servicer decides, following investor and government rules.
Forbearance: a pause, not a pardon
Forbearance gives you breathing room. Your payments are paused or lowered for a period. But as the CFPB explains, forbearance does not erase or reduce what you owe.
Before you agree, ask clearly: “How will I repay the missed amount when forbearance ends?” Some plans expect a lump sum. Others offer a repayment plan, a deferral or a modification. Get the answer in writing.
With a 12-month repayment plan, you’d pay an extra $500 a month, for a total of $2,500 each month for a year. If that’s too much, ask whether a deferral (moving the $6,000 to the end of the loan) or a modification is available instead.
Loan modification: changing the loan itself
A modification is a permanent change to your mortgage. It might lower your interest rate, extend the term, or add the past-due amount to the loan balance. The goal is a payment you can keep up with long term.
Servicers usually ask for a full application with income and expense details. Many also use a trial period of a few months before the change becomes permanent. Make every trial payment on time.
A lower payment over a longer term can mean more interest over time. If you want to understand how terms affect your payment, our mortgage calculator can help you see the numbers, and our 15 vs 30-year mortgage guide explains how loan length changes total cost.
Your federal protections
CFPB mortgage servicing rules give most homeowners important protections:
- The 120-day rule: In most cases, the servicer can’t make the first notice or filing for foreclosure until you’re more than 120 days delinquent.
- Review of your application: If you send a complete application for help more than 37 days before a scheduled foreclosure sale, the servicer generally must evaluate you for all options available to you within 30 days.
- Limits on “dual tracking”: If your complete application arrives in time, the servicer generally can’t move ahead with foreclosure while it’s being reviewed.
- Appeals: In some cases, you can appeal a denial of a loan modification.
State laws can add more protections. If you’ve received foreclosure papers, contact a housing counselor or legal aid right away.
Get free help from a housing counselor
HUD-approved housing counselors are trained to explain your options, help you organize documents, and sometimes talk with your servicer for you. Many services are free.
- Call HUD: 800-569-4287 to find a counselor near you.
- Search online: Use the “Find a housing counselor” tool on the CFPB’s website (consumerfinance.gov).
- CFPB help: If you have a problem with your servicer, you can submit a complaint to the CFPB or call 855-411-2372.
- VA borrowers: VA has loan technicians who can help Veterans with VA-backed loans talk with their servicer.
How to spot and avoid mortgage relief scams
People in financial stress are often targeted by scammers. Watch for these warning signs:
- Asking for money upfront before doing anything. Federal rules generally ban upfront fees for mortgage relief services.
- Telling you to stop talking to your servicer, lawyer or counselor.
- Telling you to make payments to them instead of your servicer.
- Asking you to sign over your deed or sign papers you don’t understand.
- Guaranteeing they can stop foreclosure or get you a modification.
If something feels off, stop and call a HUD-approved counselor before you sign or pay anything.
Looking after the bigger picture
While you work on the mortgage, look at the rest of your budget too. Lowering other debts can make a modification or repayment plan easier to manage. Our guide to the debt-to-income ratio explains how lenders and servicers look at your monthly obligations. If your payment went up because of taxes or insurance, our escrow guide explains why, and the home affordability calculator can help you see what payment fits your income.
This is hard. But taking the first step, a phone call, a counselor appointment, or one gathered folder of paperwork, really does make a difference.
FAQ
Will forbearance hurt my credit?
It depends on the program and how your servicer reports it. Ask your servicer how the forbearance will be reported before you agree, and check your credit reports afterward.
Can I get help if I’ve already missed payments?
Yes. It’s still worth calling. Options may be fewer the longer you wait, but many programs are designed for people who are already behind.
How do I find my servicer?
Look at your monthly mortgage statement or your escrow statement. You can also check the notice you got if your loan was transferred.
What if my servicer denies my request?
Ask for the reason in writing, ask whether you can appeal, and contact a HUD-approved housing counselor. You can also submit a complaint to the CFPB.
Should I sell my home?
If the payment isn’t sustainable, selling before foreclosure may protect your equity and credit. A housing counselor can help you compare selling, a short sale and other options.
Sources: Consumer Financial Protection Bureau (mortgage servicing rules, forbearance and housing counselor resources); U.S. Department of Housing and Urban Development (HUD) housing counseling; U.S. Department of Veterans Affairs; Federal Trade Commission. This article is general education, not financial advice. Keys & Coffee is not a lender.
Written by
Shivam Kaushik· IMSHIVA
Founder & Director, QuibbleTech Solutions Pvt Ltd · Editor, Keys & Coffee
Shivam Kaushik is the founder of QuibbleTech Solutions Pvt Ltd and the editor of Keys & Coffee. He is not a licensed loan officer or financial adviser. Every guide here is written in plain English and checked against official sources such as the CFPB, HUD, Fannie Mae, Freddie Mac and the Federal Reserve. For advice on your own loan, talk to a licensed lender.
Keys & Coffee is an independent education site. We are not a lender or mortgage broker, we do not take loan applications or payments, and nothing here is financial advice. This site is not affiliated with Axia Home Loans, Axia Financial, LLC, or Planet Home Lending. Rates and rules change often — always confirm details with a licensed loan officer and check any lender on the NMLS Consumer Access site.
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