What to Do If You’re Facing Mortgage Hardship

Financial hardship can happen unexpectedly, whether it’s from job loss, illness, reduced income, or another major life event. If you’re struggling to make your mortgage payments, the most important step is to act early. Contact your mortgage servicer as soon as possible—ideally before you miss a payment—to ask what relief options may be available and how each one could affect your credit.

Depending on your situation, you may qualify for temporary or long-term mortgage relief. Options can include forbearance, which pauses or reduces payments for a period of time; deferment, which allows missed payments to be delayed and repaid later; loan modification, which permanently changes loan terms to make payments more manageable; or reinstatement, which lets you catch up by paying the full past-due amount if your hardship was temporary. In some cases, refinancing may also help lower your monthly payment.

If keeping the home is no longer realistic, there may still be paths to avoid a worse financial outcome. These can include selling the home if you have enough equity, pursuing a short sale if the home is worth less than what you owe, considering a deed-in-lieu of foreclosure, or, in more serious situations, facing foreclosure. Because these options can carry legal, credit, and tax consequences, it’s important to get professional guidance.

Homeowners affected by natural disasters may also have access to special relief programs, including forbearance and assistance for FHA-insured loans in federally declared disaster areas. Always confirm with your servicer before stopping payments.

There are also trusted resources available to help. A knowledgeable REALTOR®, HUD-certified housing counselor, qualified attorney, or nonprofit housing organization may be able to guide you through your options. And most importantly, be cautious of scams—never pay upfront for mortgage-relief help.

When financial hardship hits, the worst thing to do is wait. The sooner you ask for help, the more options you may have.