Understanding options to stay in your home

If you are facing financial hardship and are at risk of missing your payment — or have already missed a payment — you should reach out to you loan servicer (the company listed on your mortgage statement) as soon as possible to discuss your options. They are your best resource for identifying solutions that allow you to stay in your home base on your individual situation.

Your loan servicer will work with you to determine if you're eligible for any of the following options to stay in your home.

Options to Adjust Your Mortgage Terms

Forbearance

Forbearance is an agreement between you and your loan servicer that either pauses or reduces your monthly mortgage payments for a limited time.

Who is it for? You may consider forbearance if you are currently unable to make your monthly mortgage payments but think you should be able to resume making payments soon.

Payment Deferral

A payment deferral moves your missed mortgage payments to the end of your loan term, but your monthly mortgage payment amount stays the same.

Who is it for? You may consider payment deferral if your hardship has been resolved but you are not able to repay the mortgage payments you missed as a lump sum or through increasing your monthly mortgage payment.

Modification

You and your loan servicer agree in writing to modify or restructure your mortgage to make it more affordable and sustainable. A loan modification typically reduces the monthly payment amount by changing the terms of the mortgage, such as extending the number of years you have to repay the loan and lowering the interest rate.

Who's it for? If you’re facing a long-term financial hardship and are behind on your mortgage or expect you will fall behind soon.

Refinance

Refinancing your mortgage may lower your interest rate. Or you may replace an adjustable-rate mortgage with a fixed-rate mortgage that is more affordable.

Who is it for? You may consider refinancing if you are current on your mortgage payments but would benefit from a reduced payment in the future.

Options to Bring Your Mortgage Current

Repayment Plan

With a repayment plan, your regular monthly mortgage payment increases for a short period of time to make up for the mortgage payments you missed. A repayment plan must be longer than one month, but no more than 12 months.

Who is it for? You may consider a payment plan if, for a period of time, you’re able to afford your regular monthly payment plus a little more.

Partial Reinstatement

With a partial reinstatement, you pay as a lump sum part of the mortgage payments that you missed. To pay off the rest of the mortgage payments you owe, your loan servicer with work with you to create a repayment plan.

Who is it for? You may consider a partial reinstatement if your hardship has ended and you are able to make a lump sum payment, but not the full amount you owe all at once.

Full Reinstatement

With full reinstatement, you pay as a lump sum the total mortgage payments you owe, including taxes and insurance premiums paid, delinquent interest, any legal costs and other expenses incurred by the loan servicer. A full reinstatement makes your mortgage current.

Who is it for? You may consider full reinstatement if your hardship has ended and you are able to make a lump sum payment.

No matter where you stand in your current and future abilities to make your monthly mortgage payments, there are options available to help you avoid foreclosure. Contact your loan servicer to determine the best option for your circumstances.

There should never be a fee from a mortgage company or HUD-certified housing counselor to obtain assistance about options to help you stay in your home. Be wary of companies or individuals offering to help you for a fee, and never send a mortgage payment to any company other than the one listed on your monthly mortgage statement. If you believe you’ve been the victim of a mortgage scam, call 1-888-995-HOPE (4673) immediately.