Falling behind on a mortgage is frightening, and it can feel isolating. It does not make you a failure. Job loss, medical bills, divorce, a death in the family: most people who fall behind simply had a hard year. The single worst thing you can do is nothing, because your choices narrow as the process moves forward. The good news is that early on, almost everyone has more paths than they realize.
First, you probably have more time than you think
In most cases, your mortgage servicer cannot start the formal foreclosure process until you are more than 120 days behind on payments. After that, the timeline depends on your state and whether it is a judicial foreclosure (through the courts) or a non-judicial foreclosure (through a trustee). The spread is enormous. The fastest states can finish in roughly four to six months, while in the slowest states cases commonly run two years or longer. Nationally the average has been running around 18 months. Look up your own state before you assume you are out of time.
Why this matters: every option below is easier the earlier you act. Even if you already have a sale date, you may still have choices. Do not assume it is too late until you have talked to your servicer and a housing counselor.
Two limits on everything you read here, including on this page.
1. Your state decides most of this. Timelines, whether you can reinstate and until when, whether you can reclaim the home after a sale, and whether you can be sued for a shortfall are all set by state law and vary enormously. Nothing on this page overrides your state's rules. To get your actual answer, call a free HUD approved housing counselor at 800 569 4287 or the Homeowners HOPE Hotline at 888 995 4673, available 24 hours a day.
2. The federal protections described here do not cover every loan. They generally apply to a loan on your primary residence. Reverse mortgages, home equity lines of credit, and loans on rentals or second homes are largely outside them. Some smaller servicers are also exempt from the review and dual tracking protections. If you are not sure which applies to you, ask a counselor before you rely on a deadline.
Do these things first
- Open every letter from your lender. The dates and notices inside tell you exactly where you stand.
- Call your mortgage servicer and ask about loss mitigation, which is the umbrella term for the programs below. Keep talking to them. It always helps.
- Call a HUD approved housing counselor at 800 569 4287, or the Homeowners HOPE Hotline at 888 995 4673. It is free.
- Gather your documents: recent pay stubs, bank statements, and a simple list of your income and expenses. You will need them for most options.
- Watch out for scams (see the warning signs near the bottom of this page).
8 ways to stop foreclosure
There is almost always more than one way through this. The right choice depends on whether you can afford the home going forward, how much equity you have, and how far along the process is.
Reinstate the loan (catch up all at once)
If your hardship was temporary and you can pay the past due amount plus fees in a lump sum, reinstating brings the loan current and stops the foreclosure. Ask your servicer for a written reinstatement quote good through a specific date.
Set up a repayment plan
A repayment plan spreads the past due amount over several months on top of your regular payment. It is a good fit if the hardship has passed and you can afford a little extra each month for a while.
Ask for forbearance
Forbearance pauses or reduces your payments for a set period while you get back on your feet. The paused amount still has to be repaid, but for most loans your servicer cannot force you to repay it all at once. Ask about a repayment plan, a modification, or a deferral that moves the missed amount to the end of your loan, and get the plan in writing before the forbearance ends.
Apply for a loan modification
A modification permanently changes your loan terms, for example a lower interest rate or a longer term, to make the payment affordable. Your servicer is often required to review you for this before a sale. Only your lender or servicer can approve it.
Refinance, if you still qualify
If you have enough equity and income and your credit still holds up, refinancing into a new loan can lower your payment. This is harder once you are seriously behind, so it usually works best early.
Sell before the sale
If keeping the home is not realistic, selling before the foreclosure sale can help you preserve some or all of your equity instead of losing it at auction. You can list with an agent, or accept a direct cash offer. We buy homes ourselves, so that offer might come from us, which means we are not a neutral party in your decision. What matters is that any offer is transparent, in writing, with no upfront fees to you, and your full right to cancel.
Try a short sale, if you owe more than the home is worth
In a short sale, your lender agrees to accept less than the full balance so the home can be sold. It takes lender approval and some paperwork. The real benefit is control and the chance to negotiate away the remaining balance, not credit protection, since scoring models treat it much like a foreclosure.
Consider a deed in lieu of foreclosure
Here you hand the home back to the lender by agreement, which avoids the foreclosure itself. It is not right for everyone, and the details matter, so get the terms in writing and have someone you trust review them.
One more path: filing Chapter 13 bankruptcy creates an automatic stay that usually stops a foreclosure sale right away and lets you catch up over a court approved plan. There are real limits. You have to file before the sale happens, you must keep making your regular payment on top of the plan payment, and if you have had a case dismissed in the past year the stay may last only 30 days or not start at all. Your lender can also ask the court for permission to proceed. Talk to a licensed bankruptcy attorney.
Do not let your equity disappear at the auction
In a foreclosure auction, no one there represents you. That is not a scandal, it is just how the process works. Your lender only needs to recover what it is owed, not to get the best price for your home, and the costs come out first and grow every month.
If the sale brings in more than you owe, that surplus is legally yours. It does not come to you automatically, so you have to claim it from the county before a deadline. And none of this means you have to sell. Before the sale date you may still be able to reinstate the loan, set up a repayment plan, apply for a modification, or sell on your own terms. A HUD approved housing counselor will walk through all of them with you for free at 888 995 4673. Selling before the sale is one way to protect it. Before you accept any offer, make sure there are no upfront fees, every term is in writing, you have a clear right to cancel, and no one asks you to sign over your deed. There is no general right to cancel a home sale, so never sign expecting to undo it later. Some states do give homeowners already in foreclosure a short window to cancel a sale to an investor, and those laws require the buyer to hand you a written cancellation notice.
How to spot a foreclosure rescue scam
Homeowners in trouble are targets. Government agencies including the FTC and HUD warn about foreclosure rescue scams. Walk away from anyone who does any of these:
Red flags. Walk away from anyone who: asks for a fee before doing anything, guarantees they will stop your foreclosure, tells you to stop making your mortgage payments, tells you to send payments to them instead of your servicer, tells you to stop talking to your lender or lawyer, pressures you to sign quickly, asks you to sign over your deed or offers to rent the home back to you, pitches a "forensic loan audit," wants payment by wire transfer or gift card, or claims to be with a government program. After a sale, be equally wary of anyone offering to recover your surplus funds for a cut, because you can claim that money yourself for free from the county.
Real help never charges an upfront fee, never asks for your deed, and encourages you to talk to your own lawyer and a HUD approved housing counselor first. Here is where to find free help.
Common questions
How long do I have before foreclosure?
In most cases your servicer cannot start the formal process until you are more than 120 days behind. After that it depends on your state and whether it is a judicial or non-judicial foreclosure. The fastest states can finish in roughly four to six months, while the slowest commonly run two years or longer. Acting early gives you the most options.
Can I stop foreclosure once it has started?
Often yes. Depending on how far along it is, you may be able to reinstate, agree to a repayment plan or modification, sell before the sale, or in some cases file bankruptcy to pause the sale. The right path depends on your income, equity, and timeline.
Will I still owe money after a foreclosure?
Sometimes. If the home sells for less than you owe, some states let the lender pursue the difference and others do not. This is one reason many homeowners sell before the sale or pursue a short sale. A licensed attorney in your state can tell you how the rules apply to you.
Can I sell my house if it is in foreclosure?
Yes. You can usually sell any time before the sale date. If your home is worth more than you owe, selling can let you keep some or all of your equity. Just make sure the terms are transparent, in writing, and you are not charged an upfront fee.
Does foreclosure hurt my credit?
Yes. A foreclosure generally stays on your credit report for seven years under federal law. Selling before the sale avoids a foreclosure record entirely and a modification is usually less damaging, but scoring models tend to treat a short sale much like a foreclosure.
Is a foreclosure rescue company a scam?
Some are, and agencies warn homeowners to be careful. Red flags include upfront fees, being told to stop talking to your lender, pressure to sign fast, or a request for your deed. Legitimate help never charges upfront, never asks for your deed, and points you to a lawyer and a HUD counselor.