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Fresh Start Mortgage Relief Resource Center

Behind on Mortgage Payments: What Options Should You Review Before Foreclosure?

If you are behind on mortgage payments, review both home-retention and property-transition options before foreclosure advances. The right path depends on loan status, income, equity, property condition, deadlines, servicer programs, and personal goals. Fresh Start Mortgage Relief is not a lender, servicer, HUD counselor, law firm, or government program.

Start with the mortgage servicer

Contact the servicer using the number on the statement and ask what information is needed for a loss-mitigation review. Keep notes, copies, confirmation numbers, and proof of delivery. A complete application does not guarantee an option, but incomplete information can delay review.

Request a loss-mitigation review

Depending on the loan and circumstances, a servicer may review repayment plans, forbearance, payment deferral, loan modification, or other retention alternatives. Availability and eligibility vary. The federal Consumer Financial Protection Bureau provides current information on help for homeowners.

Use HUD-approved housing counseling

A HUD-approved housing counselor can help a homeowner understand servicer communications and available housing options. Find authorized agencies through HUD housing counseling. Fresh Start does not replace independent counseling or legal advice.

Review sale and transition alternatives

  • Traditional sale: may be possible when value and timing support paying the mortgage and sale costs.
  • Short sale: may be considered when anticipated proceeds will not cover the debt and the servicer agrees to review a discounted payoff.
  • Deed-in-lieu: may be available when a servicer accepts title under its requirements.
  • Private acquisition or transition: a private buyer may propose purchasing the property or arranging another documented transition, subject to contracts, loan terms, title, and risk review.
  • Legal advice: may be appropriate when a foreclosure deadline, bankruptcy, probate, title dispute, lawsuit, or deficiency exposure is involved.

Questions to ask before deciding

  • What is the current reinstatement or payoff amount?
  • Has a foreclosure sale been scheduled?
  • Is there equity after liens and sale costs?
  • Can the household sustain a revised payment?
  • What documents and deadlines apply?
  • What happens to title, the loan, occupancy, and credit under each option?

Practical next step

Gather the most recent mortgage statement, notices, income information, title documents, and property details. Review Homeowner Situations and Options & FAQ, then request a confidential Property Review from Fresh Start Mortgage Relief if you want to discuss a possible property-transition route. No specific result is guaranteed.