Help with Mortgage Payments: Your Complete Guide
If you're struggling to make your mortgage payment, you have options. This guide explains every form of mortgage assistance available in 2025, including government programs, servicer options, and local resources.
On This Page:
Immediate Help: Can't Make This Month's Payment
If you can't make your mortgage payment this month, don't panic and don't ignore it. You have options, but time is critical. Here's what to do immediately:
Do This Today
- ✅ Call your mortgage servicer immediately
- ✅ Explain your hardship (job loss, illness, etc.)
- ✅ Ask about forbearance or payment deferral
- ✅ Document everything (dates, names, reference numbers)
- ✅ Request confirmation in writing
Don't Do This
- ❌ Ignore calls from your servicer
- ❌ Skip the payment without notice
- ❌ Take out payday loans to cover payment
- ❌ Assume you have no options
- ❌ Wait until foreclosure notice arrives
Option 1: Mortgage Forbearance
What it is: Your servicer agrees to temporarily reduce or pause your payments for 3-12 months while you recover from a financial hardship.
✅ Pros:
- • Quick approval (often within days)
- • No fees or penalties
- • Stops foreclosure process
- • Doesn't require extensive documentation
⚠️ Cons:
- • Payments are not forgiven (must be repaid)
- • May impact credit score
- • Interest continues to accrue
- • Must have repayment plan after forbearance ends
Who qualifies: Anyone experiencing temporary hardship (job loss, medical emergency, disaster, etc.). Works best if you expect income to return within 3-12 months.
Option 2: Payment Deferral
What it is: Skip 1-3 months of payments and add them to the end of your loan. Resume normal payments immediately after.
Best for: Short-term hardship where you can resume payments quickly (e.g., temporary job loss, one-time medical expense).
Example: You lose your job in March but start a new job in April. You defer March's payment to the end of your loan and resume normal payments in April. No lump sum repayment required.
Short-Term Solutions (3-12 Months)
Repayment Plan
If you missed 1-3 payments and can now afford your regular payment plus a little extra, a repayment plan spreads the past-due amount over 3-6 months.
Example: You're 3 months behind ($6,000 owed). Your servicer adds $1,000/month to your regular payment for the next 6 months to catch up.
Best for: Recent short-term hardship that's now resolved (temporary job loss, one-time expense).
Partial Claim (FHA Loans Only)
If you have an FHA loan, the government may pay your past-due amount directly to your servicer. You repay the government with a zero-interest loan when you sell or refinance (no monthly payments).
This is one of the best options available. No monthly payments on the past-due amount, and you return to your regular mortgage payment immediately.
Requirements: FHA-insured loan, hardship documentation, current income sufficient for regular payments.
Long-Term Solutions (Permanent Changes)
Loan Modification
The servicer permanently changes your loan terms to make payments more affordable. This might include:
- • Lower interest rate (e.g., 6.5% → 3.5%)
- • Extended term (e.g., 20 years remaining → 30 years)
- • Principal forbearance (part of principal set aside with no interest)
- • Arrears capitalization (past-due amount added to principal)
Example: Your $2,200/month payment is reduced to $1,600/month permanently by lowering your interest rate to 3% and extending the term to 40 years.
✅ Pros:
- • Permanent payment reduction
- • Keeps you in your home
- • Often the best long-term solution
- • Available for most loan types
⚠️ Cons:
- • Requires extensive documentation
- • 60-90 day application process
- • May extend loan term significantly
- • Credit impact (but less than foreclosure)
Refinance (If You Can Afford Payments)
If your hardship is due to rising interest rates (ARM adjustment, rate increase) and you have good credit, refinancing to a new loan with better terms might be your best option.
Requirements: Good credit (660+), sufficient equity, steady income, no recent missed payments.
Government Assistance Programs
Homeowner Assistance Fund (HAF)
Many states received federal funding to help homeowners catch up on past-due mortgage payments, property taxes, and homeowners insurance.
Eligibility: Income limits (typically 150% of area median income), hardship due to COVID-19 or other qualified reason, primary residence.
How much: Varies by state, but typically up to $30,000-50,000 per household.
Check if your state has HAF funds available:
→ View State Assistance ProgramsVA Assistance (Veterans Only)
If you have a VA loan, you have access to special assistance programs including:
- • VA Refund Modification: Lower your interest rate to the current VA rate
- • VA Partial Claim: Similar to FHA partial claim
- • Veteran-specific counseling: Free from VA-approved counselors
Contact: Veterans Crisis Line: 1-800-273-8255 (Press 1) or VA Loan Center: 1-877-827-3702
Who to Call First
1. Your Mortgage Servicer (Loss Mitigation Department)
Call first. They have the authority to modify your loan, grant forbearance, or set up payment plans.
Find your servicer's phone number on your monthly statement or visit their website and search for "loss mitigation" or "hardship assistance."
2. HUD-Approved Housing Counselor (Free)
Call for guidance. Free, expert counselors can explain your options, review your finances, and help you navigate servicer negotiations.
Call: 1-800-569-4287 or visit: Find HUD Counselors Near You
3. Homeowner's HOPE Hotline (24/7)
Call anytime. Free, 24/7 foreclosure prevention counseling in multiple languages.
Call: 1-888-995-HOPE (4673)
Frequently Asked Questions
Will I lose my house if I miss one payment?
No. Foreclosure typically doesn't begin until you're 90-120 days behind (3-4 missed payments), and even then, you have options. The key is to contact your servicer immediately after the first missed payment. Don't wait until you're months behind.
Will asking for help hurt my credit score?
Requesting help does not hurt your credit. Forbearance and loan modifications may be reported to credit bureaus, but the impact is significantly less than foreclosure or 90+ day delinquencies. If your credit is already impacted by missed payments, getting assistance can actually help by preventing further damage.
Can I get assistance if I'm currently employed?
Yes. Assistance is based on your ability to afford your current payment, not just whether you're employed. Reasons for assistance include: income reduction, medical bills, divorce, escrow increases, ARM rate adjustments, or any other financial hardship that makes your payment unaffordable.
Do I need an attorney?
Most homeowners do not need an attorney for standard loss mitigation (forbearance, modifications). However, if you're facing foreclosure, have been denied assistance, or suspect servicer errors, consulting a foreclosure attorney or legal aid organization can be helpful. Find legal aid near you.
My servicer denied my request. What now?
If denied, you have the right to appeal. Request a written denial letter stating the specific reasons. Common reasons include incomplete documentation, insufficient income, or not meeting investor guidelines. A HUD counselor can help you appeal or explore other options. Don't give up after the first denial.
How long does the loan modification process take?
Typically 60-90 days from complete application to decision. During this time, you may be placed in a "trial payment plan" where you make reduced payments for 3 months. If you complete the trial successfully, the modification becomes permanent. Be patient and respond to all servicer requests promptly.
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Take our free 10-minute triage assessment to find out exactly which options you qualify for based on your situation.
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Important Disclaimer
We are not associated with the government or your lender. Your lender may not agree to change your loan. We are not a lender, law firm, or financial advisor. This is educational information and DIY templates only. Nothing on this site constitutes legal, tax, or financial advice.