Struggling to make a mortgage payment can become stressful quickly, especially when a temporary financial setback turns into several months of payment trouble. Homeowners facing this situation may have several forms of mortgage payment assistance available, depending on their mortgage, financial circumstances, and the reason they are having difficulty paying.
The Consumer Financial Protection Bureau (CFPB) recommends contacting your mortgage servicer immediately if you cannot make your mortgage payment or think you may miss one. A HUD-approved housing counseling agency can also provide free assistance with understanding foreclosure-prevention options.
Possible solutions range from temporarily reducing payments through forbearance to permanently changing mortgage terms through a modification. Some homeowners may eventually decide that selling the property is financially preferable to continuing with an unaffordable mortgage.
Here are eight options to review if you're struggling to pay.
1. Request Mortgage Forbearance
Mortgage forbearance temporarily pauses or reduces your required mortgage payments under an agreement with your servicer. It can provide short-term help when a homeowner experiences a temporary loss of income or another financial setback.
Forbearance does not erase the payments you skip. You will still need to address the unpaid amounts afterward.
Depending on the mortgage, options after forbearance may include a repayment plan, payment deferral, partial claim, or modification. CFPB guidance states that, for most mortgages, servicers cannot require borrowers to repay all skipped forbearance payments in a lump sum when the forbearance period ends.
Before agreeing to forbearance, ask your servicer:
- How long will the forbearance last?
- How much will I need to pay during this period?
- How will the unpaid amount be handled afterward?
- Will interest continue accumulating?
- What happens to property taxes and homeowners insurance?
- Which repayment arrangements could be available when forbearance ends?
Forbearance may be appropriate when the underlying mortgage hardship is temporary and you expect your finances to recover.
2. Set Up a Repayment Plan
A repayment plan can help homeowners who have fallen behind but now have enough income to resume their regular mortgage payments and pay extra toward the overdue balance.
Under a repayment plan, part of the past-due amount is added to your regular mortgage payment for an agreed period. This allows you to catch up gradually instead of paying the entire overdue balance immediately.
For example, your payment during the repayment period would consist of your regular mortgage amount plus a portion of your arrears.
The main drawback is that your monthly obligation temporarily increases. A repayment plan may therefore make sense only if your finances have recovered enough to handle the higher amount.
The CFPB also notes that a lender or servicer may continue treating the mortgage as delinquent until all missed mortgage payments have been repaid.
Before accepting a repayment plan, ask for the proposed monthly amount and repayment period in writing and compare them with your current budget.
3. Ask About Payment Deferral or a Partial Claim
Some homeowners recover from a financial setback and can afford their regular mortgage payment again but cannot immediately repay everything they missed.
A deferral or similar arrangement may allow eligible past-due amounts to be repaid later instead of requiring an immediate lump-sum payment. The exact program depends on the mortgage.
Government-insured mortgages may have specific programs.
For example, FHA's current loss-mitigation program includes a Standalone Partial Claim. For eligible FHA borrowers, past-due amounts can be placed into an interest-free subordinate lien against the property. No regular monthly payment is required on that partial-claim amount. Repayment generally occurs when the first mortgage is paid off, the property is sold, the mortgage is assumed, title is transferred, or certain refinances occur.
FHA also currently has a Payment Supplement that uses a partial claim to resolve delinquent payments while temporarily reducing the borrower's monthly mortgage payment for three years.
These FHA programs should not be treated as options available to every homeowner. Ask your servicer which deferral or partial-claim programs apply to your specific mortgage.
4. Apply for a Loan Modification
A loan modification permanently changes one or several terms of an existing mortgage to address payment difficulty.
Unlike refinancing, modification does not replace your mortgage with a completely new loan. Instead, the servicer modifies the existing mortgage under an applicable loss-mitigation program.
A modification may reduce the monthly payment through measures such as extending the repayment period, reducing the interest rate, or addressing principal, depending on the applicable program.
For FHA-insured mortgages, current home-retention options include a Standalone Loan Modification and a Combination Loan Modification and Partial Claim. FHA states that a Standalone Loan Modification can resolve overdue payments by adding them to the principal balance and extending the mortgage term at a fixed interest rate.
A lower monthly payment can have long-term tradeoffs. Extending the mortgage term may keep you in debt longer and could affect the amount you ultimately pay.
Ask your servicer for information showing both the new monthly payment and the long-term effect before accepting a modification.
5. Look Into Mortgage Refinancing
Refinancing replaces your current mortgage with a new mortgage carrying different terms.
The CFPB identifies refinancing as one potential option for homeowners who cannot pay their mortgages.
Depending on the new interest rate, mortgage term, closing costs, and your qualifications, refinancing could reduce your monthly payment. However, it does not automatically save money.
A longer mortgage term, for instance, could lower your monthly payment while increasing the amount of interest paid over a longer period.
Before refinancing, compare:
| Factor | What to Review |
|---|---|
| Interest rate | Compare the existing and proposed rates |
| Monthly payment | Calculate the actual monthly difference |
| Loan term | Check how long repayment will continue |
| Closing costs | Identify upfront and financed expenses |
| Long-term cost | Compare estimated interest and total payments |
| Break-even period | Estimate how long savings may take to cover refinancing costs |
Refinancing also requires qualifying for the new mortgage. If you're already seriously delinquent, available refinancing choices may be limited.
6. Sell the Home
Selling the property may be worth reviewing if your financial situation has changed permanently and the mortgage is no longer affordable.
If the property is worth enough to cover the outstanding mortgage and selling expenses, a traditional sale may allow you to repay the mortgage and retain any remaining equity.
Before deciding, compare:
- Your estimated home value
- Current mortgage payoff amount
- Estimated selling expenses
- Remaining home equity
- Cost of alternative housing
- How quickly the property could realistically sell
Avoid making this decision based on predictions about where home prices are headed. Housing markets vary by location, and future prices cannot be known with certainty.
Selling can be a significant decision, but acting before the mortgage becomes severely delinquent may leave you with greater control over the timing and terms.
7. Request Approval for a Short Sale
If you cannot afford the mortgage and selling the property normally would not generate enough money to repay the mortgage debt, a short sale may be another possibility.
In a short sale, the servicer approves the sale of the property for an amount below what is owed on the mortgage. The CFPB lists a short sale among the potential options servicers may make available to homeowners who cannot pay their mortgages.
FHA has its own version called a Pre-Foreclosure Sale for eligible borrowers whose property's current market value is insufficient to pay the mortgage in full.
Before agreeing to a short sale, ask how any remaining mortgage balance will be handled. Debt that is canceled can have federal tax consequences.
The IRS generally treats canceled debt as taxable income unless an exception or exclusion applies. The federal exclusion for qualified principal residence indebtedness generally no longer applies to discharges completed after December 31, 2025, unless the discharge occurs under a qualifying written arrangement entered into before January 1, 2026. Other exclusions, including bankruptcy and insolvency, may still apply in certain situations.
A tax professional can help determine how these rules apply to an individual short sale.
8. Discuss a Deed in Lieu of Foreclosure
A deed in lieu of foreclosure may become relevant when you can no longer afford the property and other mortgage relief options have not resolved the problem.
With this arrangement, the homeowner voluntarily transfers ownership of the property to the lender or servicer under an approved agreement rather than completing the foreclosure process.
The CFPB identifies a deed in lieu as another potential loss-mitigation option for borrowers who cannot make their mortgage payments.
Do not assume that transferring the property automatically eliminates every dollar of mortgage debt. Before signing anything, obtain written information explaining:
- How the outstanding mortgage balance will be handled
- When you must leave the property
- Which expenses remain your responsibility
- Any potential financial consequences
- How canceled debt will be treated
Because transferring a home has significant financial and legal consequences, homeowners may want independent legal or tax advice before completing the transaction.
How the 8 Mortgage Payment Assistance Options Compare
Each option addresses a different financial problem.
| Option | May Fit When | Main Tradeoff |
|---|---|---|
| Forbearance | Financial trouble is temporary | Skipped amounts remain owed |
| Repayment plan | You can resume payments and temporarily pay extra | Monthly payments increase while catching up |
| Deferral or partial claim | Regular payment is affordable again but arrears are not | Deferred amounts remain payable later |
| Loan modification | Existing payment has become unsustainable | Changes may extend repayment or affect long-term costs |
| Refinancing | You can qualify for a new mortgage with workable terms | Closing costs and qualification requirements apply |
| Traditional sale | Keeping the property no longer fits your finances | You must move and find alternative housing |
| Short sale | Home value is insufficient to fully repay eligible mortgage debt | Servicer approval and possible tax consequences |
| Deed in lieu | Keeping or selling the property is no longer workable | You surrender ownership of the property |
These examples are general. Eligibility and available programs depend on the mortgage, servicer, investor or insurer, and the homeowner's circumstances.
Contact Your Mortgage Servicer Early
You do not need to wait until several payments have been missed before asking for help.
The CFPB recommends calling your mortgage servicer immediately if you cannot pay your mortgage or are worried that you'll miss an upcoming payment. When you contact the servicer, be prepared to explain why you cannot make the payment, whether the problem appears temporary or permanent, and information about your income, expenses, and assets.
Your servicer can then explain which assistance programs may be available for your mortgage.
You may also want to identify who owns, backs, or insures the mortgage. Programs can differ for mortgages associated with:
- Fannie Mae
- Freddie Mac
- FHA
- U.S. Department of Veterans Affairs
- U.S. Department of Agriculture
- Private mortgage investors
Rules from one program should not be applied broadly to every mortgage.
Get Help From a HUD-Approved Housing Counselor
Homeowners don't have to evaluate these choices alone.
The CFPB recommends contacting a HUD-approved housing counseling agency for free expert assistance with foreclosure prevention. Counselors can help borrowers understand available programs and prepare for conversations with their servicers.
This can be particularly helpful when you're unsure what your servicer is proposing or when several assistance options are available.
A housing counselor cannot guarantee that you'll qualify for a particular program, but they can help explain your choices.
Watch for Mortgage Assistance Scams
People experiencing financial trouble can become targets for foreclosure-relief scams.
The CFPB warns homeowners about companies that charge upfront fees, guarantee a mortgage modification, guarantee that the homeowner will keep the property, tell borrowers to stop making payments, or ask them to send mortgage payments somewhere other than their servicer.
Be especially cautious if someone:
- Guarantees they can stop foreclosure
- Requests upfront payment for assistance
- Tells you not to contact your mortgage servicer
- Tells you to stop making mortgage payments
- Asks you to transfer your property title
- Requests mortgage payments be sent to an unfamiliar recipient
- Claims government affiliation that you cannot verify
- Pressures you to sign documents you do not understand
Legitimate assistance is available through your mortgage servicer and HUD-approved housing counselors without paying a foreclosure-relief company.
Choosing an Option That Fits Your Financial Situation
The right form of mortgage payment assistance depends heavily on why you're struggling to pay and how long the problem is expected to continue.
Forbearance may provide temporary relief during a short-term setback. A repayment plan or eligible deferral arrangement may help once your finances recover. A loan modification may address a payment that has become unaffordable over the longer term.
If keeping the property no longer fits your finances, selling, a short sale, or a deed in lieu may provide another path and potentially help you avoid foreclosure.
Start by contacting your mortgage servicer and explaining your circumstances. Ask which programs apply to your mortgage, what you need to qualify, how overdue amounts will be handled, and what the long-term financial effect could be. Getting the proposed terms in writing can make it easier to compare your choices before deciding.
