The short answer

Call your mortgage servicer now and talk to a free HUD-approved housing counselor. Generally, foreclosure cannot start until you are at least 120 days behind. If you cannot keep the house and you have equity, selling it yourself is often better than letting it go to foreclosure.

Act early

The Consumer Financial Protection Bureau says the legal foreclosure process generally cannot start until you are at least 120 days behind. After that, how long you have before a foreclosure sale depends on your state.

Use that time. Call the company you send your payments to, your servicer, and ask what help they offer. Your protections are strongest when you send a complete application for help early.

Talk to a free housing counselor

HUD-approved housing counselors help homeowners understand their options and talk to their servicer, for free. You can find one near you with the CFPB’s counselor search, or by calling 1-888-995-HOPE.

A real counselor never charges you upfront to save your home.

Options that keep the house

Depending on your loan and situation, your servicer may offer one of these. Each has its own requirements, so ask exactly what you would qualify for and what it would cost.

  • Repayment plan: catch up by paying extra on top of your regular payment for a while.
  • Forbearance: a temporary pause or reduction in payments.
  • Loan modification: a lasting change to the loan’s terms, such as the rate or length.
  • Refinance: a new loan that replaces the old one, if you qualify.

Options if you cannot keep it

If keeping the house is not realistic, there are better ways out than foreclosure. The CFPB notes that for owners with equity, selling can be an alternative, since foreclosure is costly and stays on a credit report for years.

  • Sell the house: if you owe less than it is worth, the loan is paid off at closing and you keep the difference.
  • Short sale: if you owe more than it is worth, your servicer may approve a sale for less than you owe.
  • Deed in lieu of foreclosure: you give the house back to the servicer in exchange for relief from some or all of the debt.

If you decide to sell

Timing matters. The sale has to close before any foreclosure sale date, so tell every buyer or agent about your deadline on the first call. Ask your servicer for a payoff statement so you know what is owed, including late fees.

You can list with an agent or sell directly to a buyer like us. Listing usually takes longer, with repairs, showings, and a buyer’s loan to wait on. A direct sale can close as-is on a date you pick. Compare what you would keep after costs and whether each path can close before your deadline.

Watch for foreclosure rescue scams

People in this spot are targets. The Federal Trade Commission warns about companies that promise to save your home for a fee.

  • Never pay upfront for help with your mortgage. It is illegal for companies to charge before they deliver results.
  • Never sign over your deed to someone who says they will save your home or let you rent it back.
  • Be wary of anyone who tells you to stop talking to your lender, lawyer, or housing counselor.
  • Avoid anyone who wants payment by wire, cashier’s check, or a payment app.

Sources and further reading

These references provide general background for the questions covered here. They do not replace advice for your property, estate, or situation.