Avoid foreclosure
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If you are concerned about losing your home, you don’t have to face it alone. Contact a HUD-approved housing counseling agency to get free, expert assistance on avoiding foreclosure.
What is Foreclosure?
Foreclosure is when the lender or mortgage servicer takes back the property after the homeowner falls too far behind on their mortgage payments.
Facing foreclosure can feel overwhelming, but you may have more options than you realize. The most important thing you can do when you’re having trouble paying your mortgage is to take action. In most cases, the worst thing you can do is nothing.
Talk to your mortgage servicer. That’s the company that handles your mortgage payments.
If you want to stay in your home
Your mortgage servicer can work with you to avoid foreclosure and see if there’s an option to keep your home. If you’re behind on your mortgage and not in forbearance or loan modification, these may still be options. So, it’s important to contact your servicer immediately as well as a HUD-approved housing counseling agency. Learn what to do you if you can’t pay your mortgage.
If you want or need to leave your home
If you have discussed your payment options with your mortgage servicer and can’t afford your mortgage anymore, you may need to leave your home. That can be a difficult decision. But don’t just walk away.
You may have options that are better for your finances and your credit:
These options will typically be less expensive and shorter processes than foreclosure. A foreclosure will also do more damage to your credit. A foreclosure stays on a borrower’s credit report for seven years. If you buy another home before these seven years are up, you will typically pay a higher interest rate than if you did not have a foreclosure in your credit report. You may also end up paying higher interest rates on credit products not related to owning a home. Selling your home or getting a deed-in-lieu may also help you avoid owing the remaining amount of your mortgage.
Frequently Asked Questions
Below you’ll find answers to key questions about the options listed above. For additional details, contact a HUD-approved housing counseling agency. They can help guide you through the process of working with your servicer to find out what you qualify for and select which option is best for you.
Get expert help
Talk to a housing counselor
For help talking to your mortgage servicer or understanding your options, contact a HUD-approved housing counseling agency in your area. Housing counselors can develop a tailored plan of action and help you work with your mortgage company, at no cost to you.
Talk to a lawyer
If you need a lawyer, there may be resources to assist you, and you may qualify for free legal services through legal aid. If you’re a servicemember, you should consult with your local Legal Assistance Office .
Submit a complaint
If you have a complaint with your mortgage or forbearance plan, tell us about your issue—we'll forward it to the company and work to get you a response, generally within 15 days.