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Assessing your situation

If you’re facing a life change that impacts your ability to pay your mortgage, it’s time to reach out for help and avoid the costly impacts of foreclosure.


You have certain responsibilities as a homeowner – including paying your mortgage and maintaining your home. To succeed, it’s important that you always have a pulse on your financial well-being.

To quickly assess your financial situation, ask yourself:

  • Can you afford routine home maintenance, such as servicing your air conditioning and fixing a broken window?
  • Are you able to pay more than the minimum amount due on your credit cards?
  • Would you still be able to pay your mortgage if you faced a temporary reduction in pay?

If you answered “no” to any of the above, you may be at risk of falling behind on your mortgage payments which, if not addressed with your loan servicer (the company listed on your mortgage statement), can lead to a foreclosure – the results of which can be emotionally and financially devastating.

What is a foreclosure and what does it mean?

Foreclosure is a legal process by which the mortgage company takes ownership of the property to pay off the mortgage because the loan is in default. The process of foreclosure is different in every state – in some, foreclosure can happen in as little as a month; in others, the process could take longer. In either case, the results can be devastating to your credit, cause distress in your life and make it far more difficult and expensive to get a mortgage in the future.

If you’re struggling to make your mortgage payments on time or believe you may fall behind soon, reach out to your loan servicer (the company listed on your mortgage statement) as soon as possible – they have options and want to help.

Financial hardships

Life is full of unexpected challenges and financial setbacks are among them. Typically resulting from unemployment, divorce, illness or a natural disaster, they can make it difficult to pay your mortgage in a timely manner.

Whether you’re facing a short-term hardship that you expect to resolve within 12 months or a long-term hardship that extends beyond a year, your loan servicer may be able to help get you back on track.

You’ll need to be open and honest with them. Different situations require different solutions, and they need a clear picture of your financial situation to help you.

If you believe your financial situation could be improved with budgeting assistance consider talking to a housing counselor to help regain your financial footing, build a personal budget and rebuild your credit.

Tools and Resources

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Budget Worksheet

Get a sense of how and where you’re spending your money so you can build a realistic monthly budget.

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Brochure: Avoiding Foreclosure

Learn how to identify the early warning signs and pursue alternatives to foreclosure.

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Quiz: Understanding Foreclosure & Your Alternatives

If you’re struggling to make your mortgage payment, help is available. Do you know your options?

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Who to contact for help