If you’re behind on your mortgage payments, or you know you’re about to miss one, the most important thing to do is act early. Missing a payment can become harder to fix the longer you wait, but there may still be options available if you contact your loan servicer quickly, explain your situation clearly, and ask what relief paths may fit your hardship.
This guide walks through practical next steps, what to prepare before you call, and how to think about short-term versus longer-term solutions.
The first step in this circumstance should be to get in touch with your mortgage lender to explain the situation. Simply leaving things alone and not explaining why you have missed a payment will just make things worse.
If lenders do not hear anything from the homeowners, they are not going to know what is going on. Therefore, they may end up taking drastic action. The first thing that homeowners need to do is to let the lender know that they are falling behind on their mortgage payments.
When people are struggling financially, they avoid calling their creditors for as long as they can. This is usually the wrong strategy to have if you want to make sure that you keep your home.
Let the lender know why the mortgage payments will be coming in late. For example, you may have been laid off from your job, had an unexpected medical expense, or be dealing with another temporary setback.
If you have a good payment history and you are the one to initiate contact, the lender may be more likely to consider options for you to repay the mortgage.
Before you contact your mortgage servicer, it helps to have a few basics ready so the conversation is more productive:
Try to write down the name of the person you speak with, the date of the call, and any instructions they give you.
You also should discuss with the lender all of the options when it comes to late mortgage payments. There are lots of options available. If there is a one-time unexpected expense, the lender might simply break up that payment and spread it out over the upcoming payments without charging any extra interest.
Or, the lender might be willing to simply add a few months to the mortgage in exchange for not charging a late fee. These are a few of the many options the lender has at his or her disposal.
Not every relief option works the same way, and availability depends on your loan type and your servicer’s rules. The right fit often depends on whether your hardship is temporary or more lasting.
A repayment plan is generally used when you had a short-term setback but can now afford your regular payment again. In that case, the missed amount is usually repaid over time in equal monthly installments along with your normal payment. For some loans, the repayment period is limited, so ask how long the plan would last and what the monthly catch-up amount would be.
A payment deferral or partial claim, where applicable, may move missed payments to be dealt with later instead of requiring you to repay everything right away. This can be helpful if you can afford your ongoing payment but cannot handle a large catch-up amount immediately.
Forbearance is generally a temporary pause or reduction in payments during a hardship. It can provide short-term breathing room, but it is not a permanent fix by itself. As the CFPB notes, it takes a plan to exit mortgage forbearance, so ask early what repayment or post-forbearance options would apply in your situation.
A loan modification is usually considered when the hardship is longer term and the current mortgage payment is no longer manageable. This option changes one or more loan terms to make the payment more affordable on an ongoing basis.
If your hardship is temporary, focus first on the options that are least likely to create a bigger financial problem later. Cutting nonessential spending, selling an item you do not need, picking up short-term extra income, or getting help from a trusted family member may be safer ways to cover a missed payment than taking on expensive new debt.
You can also look closely at which bills are most critical to housing stability and whether there is room to adjust other expenses while you work out a plan with your servicer.
However, be careful with payday loan companies or other short-term lenders, as they may charge extremely high interest that can make it even more difficult to get out of debt later. If catching up on the mortgage would require high-cost borrowing that you may not be able to repay, that is often a sign to ask your servicer about formal relief options instead.
In some circumstances, you might be able to arrange with your loan servicer to permanently change one or more of the terms of your mortgage contract so that your mortgage payments will be more manageable for you.
This could include reducing your interest rate, adding the missed payments to the loan balance or extending the term of the loan. A loan modification can be a good idea if you are facing a reduction in your income that will last for an extended period.
If you are struggling financially and you have missed a mortgage payment, don’t panic. Instead, follow these steps to make sure that you deal with the situation well and get back on track.
Homeowners in financial distress are often targeted by mortgage assistance and foreclosure relief scams. Be cautious if someone promises to save your home, guarantees a loan modification, asks for upfront fees, or pressures you to act immediately.
Safer options include working directly with your mortgage servicer, seeking help from a HUD-approved housing counselor, or calling toll free (800) 569-4287 to find a housing counselor near you. You can also call the Homeowners Hope Hotline at (888) 995-HOPE. If an offer sounds rushed, secretive, or too good to be true, verify it before you share money, documents, or account information.
Sammamish Mortgage can help. We serve clients across Washington, Idaho, Colorado, Oregon, and California. Since 1992, we’ve been providing several mortgage programs and products with flexible qualification criteria to borrowers across the Pacific Northwest. Visit our website to get an instant rate quote or to use our online mortgage calculator. Or, reach out to us if you are ready to get pre-approved for a mortgage.
Contact your mortgage servicer as early as possible, explain why you expect to miss the payment, and ask what relief options may fit your situation. Acting early usually gives you more options than waiting until the missed payment gets older.
Have your loan or account number, property address, a short explanation of the hardship, an estimate of whether the problem is temporary or longer term, and your best guess about when you may be able to resume or catch up on payments. It also helps to write down your questions and keep notes on the call.
Start by calling your servicer, explaining the hardship, and asking about available relief. Depending on your situation, options may include a repayment plan, payment deferral, forbearance, or a loan modification. You can also review your budget and avoid taking on expensive new debt if possible.
The longer you wait, the harder the situation can become. Missing a payment does not always mean immediate foreclosure, but delays can reduce your options and increase the risk of more serious action from the servicer, so it is best to address the problem right away.
Missing one payment does not automatically mean you will lose your home, but it is still important to act quickly. Contacting your servicer early and discussing a plan can help prevent the situation from getting worse.
Some borrowers may qualify for temporary forbearance, which can pause or reduce payments for a limited period during a hardship. Availability depends on your loan type and servicer rules, and you should ask how the missed payments would be handled after the forbearance ends.
Common options include a repayment plan, payment deferral or partial claim where applicable, temporary forbearance, and loan modification. The right option usually depends on whether your hardship is short term or long term and whether you can afford your regular payment now.
A repayment plan usually spreads the missed amount over future monthly payments after a short-term setback. Forbearance is typically a temporary pause or reduction in payments during hardship. A loan modification permanently changes one or more loan terms to make the payment more affordable when the hardship is longer term.
HUD-approved housing counselors can help you understand your options and work through your situation, even though they are not the same as your mortgage servicer. If you need guidance, you can seek help from a HUD-approved housing counselor or call (800) 569-4287 to find one near you.
Be very careful with payday loans or other high-cost short-term borrowing. Those loans can make your financial situation worse, so if catching up would require expensive new debt, it is often better to ask your servicer about formal relief options instead.
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