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Call your mortgage servicer as soon as you know the new payment is unaffordable or you may miss one. Use the number on your monthly statement, explain whether the hardship is temporary or ongoing, and ask for the loss-mitigation department. Request a written explanation of what changed, the documents required for assistance, and every deadline.
Before calling, gather your latest statement, loan documents, income, expenses, assets, and a short explanation of the hardship. Free HUD-approved housing counselors can help you organize the application and communicate with the servicer. Options and foreclosure rules depend on your loan type, facts, and state; no particular modification or other relief is guaranteed.
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1. Confirm the new amount and why it changed
Compare the latest statement with the previous one line by line. A mortgage payment normally combines principal, interest, escrow for property taxes and homeowners insurance, and sometimes mortgage insurance or other charges. A large change in one component can make the total look like an interest-rate problem when the cause is actually escrow, or vice versa.
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The Consumer Financial Protection Bureau (CFPB) identifies adjustable-rate interest changes and escrow issues as examples of reasons a payment can change. Review the statement and any notice from the servicer, but do not assume the cause from the headline amount alone. Ask the servicer to identify the exact component that changed and show how the new figure was calculated. General mortgage information is available from the CFPB at consumerfinance.gov/consumer-tools/mortgages.
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Questions to ask about the increase
- Did the interest rate reset under an adjustable-rate loan? Ask for the old rate, new rate, reset date, index, margin, and any rate cap that applies under your note.
- Did an escrow analysis change the amount collected for property taxes or insurance? Ask for the prior and projected bills and the reason for any shortage or surplus adjustment.
- Was homeowners insurance replaced, canceled, or placed by the lender at a different premium?
- Did a temporary payment, introductory rate, interest-only period, or other contract feature end?
- Are late fees, advances, or other charges included? Ask for an itemized account history and the date each charge was assessed.
Keep the statement, notices, and your notes. If the amount appears inconsistent with your loan documents, ask the servicer for a written response and the procedure for disputing an error. Continue addressing the payment while the question is investigated; do not simply stop paying because a calculation is being reviewed.
2. Call the servicer before a missed payment
CFPB guidance says, “If you can’t pay your mortgage or are worried about missing a mortgage payment, call your mortgage servicer right away.” Contact information is on the monthly statement, coupon book, or the servicer’s official website. HUD also advises borrowers to contact the lender promptly at hud.gov/helping-americans/avoiding-foreclosure-contact-lender.
Tell the representative three things clearly: the new payment, the amount you can realistically pay, and what caused the change. Say whether the problem is likely to last a few weeks, several months, or indefinitely. Ask to be connected to loss mitigation (sometimes called home-retention or foreclosure-prevention assistance), not merely collections.
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Get the process in writing
During the call, ask for:
- The name or identification number of the representative and the date and time of the call.
- The loss-mitigation application form or secure upload address.
- A complete list of required documents, including acceptable file formats and whether signatures are required.
- The deadline for submitting a complete package and how the servicer defines “complete.”
- How to confirm receipt, how to check status, and who to contact if documents are missing.
- Whether foreclosure activity or regular payment requirements change while an application is under review.
Write down every instruction and keep copies of everything you submit. Send documents through the servicer’s verified channel, retain confirmation numbers, and follow up if you do not receive acknowledgment. A conversation does not itself approve relief; obtain the decision and terms in writing.
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3. Prepare an honest hardship file
A complete, consistent file lets the servicer evaluate the payment you can sustain. Gather the following before or immediately after your first call:
- Your latest mortgage statement, prior statements showing the change, and any default, escrow, rate-reset, or insurance notices.
- The promissory note, closing disclosure or settlement statement, and available information about the loan type, interest rate, reset dates, and remaining term.
- Recent pay stubs, benefit statements, tax returns, bank statements, and documentation of self-employment or irregular income.
- A monthly list of essential expenses, including utilities, food, transportation, insurance, medical costs, child support, and other debt payments.
- Cash, bank balances, retirement or investment accounts, vehicles, and other significant assets the application asks you to disclose.
- A concise hardship statement: what happened, when it began, whether income is expected to recover, and what payment would be affordable after necessary expenses.
Use actual figures rather than an optimistic budget. If income varies, show a representative low month and explain the range. Do not omit assets or debts; inconsistencies can delay review or lead to a denial. If a household member contributes income, check whether the application requires that person’s information and signature.
4. Ask about every applicable loss-mitigation option
CFPB lists refinance, loan modification, repayment plan, forbearance, short sale, and deed-in-lieu of foreclosure as possible routes. HUD describes repayment plans, temporary forbearance, and permanent modification among FHA loss-mitigation tools at hud.gov/program_offices/housing/sfh/nsc/lossmit. These are categories, not promises. Availability depends on the loan owner or insurer, your payment history, income, equity, hardship, and applicable rules.
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Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →| Option | What it generally does | Questions to ask before accepting |
|---|---|---|
| Repayment plan | Adds part of the past-due amount to regular payments for a specified period so the account can become current. | How much will be added each month, for how long, and what happens if one payment is missed? |
| Forbearance | Temporarily pauses or reduces payments while you address a hardship. | When does it end? How will every paused amount, fee, and interest charge be handled afterward? |
| Loan modification | Permanently changes one or more loan terms; the exact change is program- and case-specific. | What will the new payment, interest rate, term, principal balance, and total expected cost be? Is there a trial period? |
| Refinance | Replaces the existing loan with another loan, if you qualify and the terms are beneficial. | What rate, fees, term, payment, and break-even period apply, and will approval depend on credit, income, or equity? |
| Short sale | Allows a sale for less than the mortgage balance when the servicer approves the transaction. | How will any remaining balance, taxes, relocation, and credit consequences be handled? |
| Deed-in-lieu | Transfers the property to the lender to avoid a foreclosure sale, subject to approval. | Will the lender waive a deficiency, provide relocation assistance, and release other liens? |
The CFPB’s loss-mitigation commentary defines a repayment plan as adding delinquent amounts to regular payments over a period to bring the account current. Actual amounts and time periods are servicer- and case-specific. Short sale and deed-in-lieu are ways to exit homeownership, not alternatives with the same result as keeping the home; obtain individualized tax, credit, and legal advice before choosing one.
5. Compare written offers instead of just the monthly payment
A lower first payment can still be unaffordable if it lasts only through a trial period or leaves a large amount due later. Put each proposal side by side and answer these questions in writing:
- Sustainability: What is the payment after any temporary period, and does your realistic budget support it?
- Duration: Is the change temporary, permanent, or conditional on completing trial payments?
- Arrears: Where do missed payments, advances, fees, and interest go? Are they added to the balance, spread over future payments, or due at a specific date?
- Total cost: What term, interest rate, principal balance, and total expected payments result?
- Eligibility and deadlines: What documents, signatures, trial payments, or closing steps are required, and by what dates?
- Failure consequences: If a trial or repayment plan fails, does the prior delinquency return, and what foreclosure activity may resume?
- Homeownership: Do you keep the home, or does the option require a sale or transfer?
Ask for a complete agreement, not a verbal summary. Read the notices for appeal rights, cancellation conditions, and instructions about where to send payments. If a term is unclear, ask the servicer to explain it before signing.
6. Treat forbearance as a temporary bridge
Forbearance pauses or reduces payments; it is not forgiveness. The missed or reduced amounts must be addressed under an arrangement agreed with the servicer. The CFPB explains that the path after forbearance can depend on whether you can resume the regular payment or afford a higher payment, and that choices vary by loan. See consumerfinance.gov/housing/housing-insecurity/help-for-homeowners/exit-your-forbearance-carefully.
Contact the servicer well before the end date. Ask for a written explanation of the next payment, the treatment of the paused amount, and the date the new arrangement begins. Possible structures include a repayment plan or modification, but the available structure is not the same for every loan. Do not wait until the final day of forbearance to provide documents or negotiate the next step.
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7. Get free, independent housing counseling
HUD-approved counselors can help you understand the choices, prepare paperwork, and communicate with the servicer at no cost. CFPB’s homeowner resources are at consumerfinance.gov/housing/housing-insecurity/help-for-homeowners. The CFPB lists the HOPE Hotline at (888) 995-HOPE (4673), available 24 hours a day, seven days a week.
A counselor does not guarantee approval and cannot change the servicer’s eligibility rules. Use the counselor to check whether your budget supports a proposed payment, identify missing documents, and understand the consequences of each option. Ask whether the counselor is HUD-approved and confirm that there is no fee for the counseling service.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.8. Recognize mortgage-relief scams
Be cautious of anyone who promises to save your home, guarantees a modification, or claims special access to a government program. CFPB warning signs are described at consumerfinance.gov/ask-cfpb/what-are-mortgage-loan-modification-scams-en-272.
- Do not pay an upfront fee for a promised modification or foreclosure rescue.
- Do not sign over your deed or title because someone says it is necessary for assistance.
- Do not follow instructions to stop communicating with the servicer or stop making payments without a documented, authorized arrangement.
- Do not redirect mortgage payments to a person or company instead of the servicer identified on your statement.
- Do not share account credentials or send personal documents through an unverified website, email address, or messaging account.
Verify phone numbers and upload links independently using your statement or the servicer’s official site. A legitimate counselor can explain options without demanding control of your property.
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9. Get legal help when foreclosure is close
If you have been served court papers, received a sale date, or believe foreclosure is imminent, consult a qualified attorney promptly. Foreclosure procedures, deadlines, defenses, mediation programs, and rights to cure vary by state and by the facts of the loan. A housing counselor can help you find an appropriate referral, but counseling is not a substitute for legal advice.
Do not ignore a summons, complaint, notice of default, or sale notice. Bring the papers, payment history, correspondence, and any loss-mitigation application to the attorney. Keep submitting requested documents to the servicer while obtaining legal advice unless your attorney tells you otherwise.
10. Loan type and location determine the rules
FHA-specific guidance applies only to FHA-insured mortgages. Other federally backed or privately held loans can have different eligibility tests, timelines, and repayment structures. CFPB notes that assistance may also be available through a servicer or state program for loans not backed by Fannie Mae, Freddie Mac, or the federal government; the applicable program must be confirmed for your loan.
Your state can affect foreclosure timing, notices, court involvement, redemption rights, and available assistance. Tell the servicer and counselor where the property is located and who owns or insures the loan. Avoid relying on a neighbor’s experience or an online description of another state’s process.
11. A practical action checklist
- Compare the old and new statements and identify every changed component.
- Call the number on the statement and request loss-mitigation assistance.
- Explain the hardship, its expected duration, and the payment you can realistically afford.
- Ask for the application, document list, deadlines, and submission instructions in writing.
- Assemble income, expense, asset, loan, and hardship documents; keep a duplicate file.
- Submit a complete package and obtain confirmation of receipt.
- Compare each written proposal for payment, duration, arrears, total cost, deadlines, failure consequences, and whether you keep the home.
- Before any forbearance ends, agree in writing on how the paused amount will be handled.
- Contact a HUD-approved counselor at no cost and independently verify any company offering help.
- Seek an attorney immediately if legal papers or an imminent sale are involved.
The most important decision is to start the conversation early and keep a documented record. Prompt contact does not guarantee relief, but waiting can remove options and leave less time to assemble a complete application.
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