Want to keep your home? Here are your options.
If you want to stay, there are real paths to look at. Most of them go through your loan servicer, and free help is available from HUD-approved housing counselors.
Please read: Our Home Advisor is a company that buys houses. We don't handle loan modifications, we don't negotiate with lenders on your behalf, and we can't promise to stop or postpone a foreclosure. We explain these options because you deserve to know them. Apply directly with your servicer, and get free help from a HUD-approved counselor at (800) 569-4287.
Options you can ask your servicer about
Not every servicer offers every option, and approval isn't guaranteed. Ask what's available for your loan and what the deadlines are.
Reinstatement
You pay everything that's past due, plus allowed fees and costs, in one payment. The loan goes back to normal.
May fit if: you can get the money together from savings, family, or another source.
Ask: "What is my exact reinstatement amount, and until what date is it good?" In California you can usually reinstate until 5 business days before the sale date.
Repayment plan
You keep making your regular payment plus an extra amount each month until the past-due balance is paid off.
May fit if: your hardship is over and you can afford a higher payment for a while.
Ask: "How many months can the plan run, and what would my payment be?"
Forbearance
Your servicer lets you pause or reduce payments for a set time. The skipped amount still has to be repaid later, through a lump sum, a plan, or a modification.
May fit if: your hardship is temporary, like a short job loss or a medical recovery.
Ask: "How will I repay the paused amount when forbearance ends?" Get the terms in writing.
Loan modification
Your servicer permanently changes the loan terms, such as the interest rate, the length of the loan, or how past-due amounts are handled, to make payments more affordable.
May fit if: your income has changed for the long term but you can afford a lower payment.
Ask: "What documents do you need for a complete application?" Send everything, keep copies, and ask for written confirmation it's complete.
Refinance
You replace your current loan with a new one, possibly from a different lender.
May fit if: your credit, income, and equity are strong enough to qualify for a new loan.
Ask: Compare the full costs. Be careful with anyone promising a refinance in exchange for an upfront fee or signing over your deed.
Chapter 13 bankruptcy
Chapter 13 is a federal court process where you repay debts through a plan over three to five years. Filing creates an "automatic stay," which under bankruptcy law stops a foreclosure proceeding while the stay is in effect, and past-due mortgage payments can be caught up over time through the plan.
It has serious trade-offs. You must keep making your regular mortgage payments, the home can still be lost if the foreclosure sale is completed before you file or if you miss payments, and you live on a court-approved budget for the three to five years the plan runs.
Talk to a licensed bankruptcy attorney before deciding. We're not qualified to advise on bankruptcy, and this isn't a recommendation either way.
Free help: HUD-approved housing counselors
HUD-approved housing counseling agencies are nonprofit or government-approved groups. If you're having trouble paying your mortgage, their help exploring your options is free. HUD says these agencies can't charge for it.
A counselor can help you understand your options, organize your paperwork, and communicate with your servicer.
- Call HUD's locator line: (800) 569-4287 (TTY (800) 877-8339) and enter your ZIP code.
- Or search online: CFPB housing counselor finder.
If a company charges you a fee for this kind of help, check whether it's really HUD-approved.
Your rights while you apply
- Send a complete loan modification application at least 5 business days before a scheduled sale. While it's pending, California law generally says the servicer can't move forward with the foreclosure.
- You can't be charged a fee to apply for a loan modification.
- If you ask for help, a larger servicer must give you a single point of contact.
- If you're denied, the servicer must give its reasons in writing and give you time to appeal.
- The earlier you apply, the more protection you have. Federal rules give the most protection when a complete application comes in early.
Tips that make applying easier
- Write a short, honest hardship letter: what happened, when, and what has changed.
- Gather recent pay stubs, bank statements, tax returns, and your mortgage statement before you call.
- Fill out and sign the forms yourself, send everything at once, and keep copies of all of it.
- Write down the date, the name of the person you talked to, and what they said, every time you call.
- Keep paying what you can afford and keep opening your mail.
- Never pay your mortgage to anyone except your servicer.
If keeping the home isn't realistic
Sometimes the numbers just don't work, and that's not a failure. Selling before the sale date may let you choose when you move and keep any equity left after the loan is paid off. See your options to sell, including a short sale and a deed in lieu.
Want to compare keeping and selling?
We'll go over the selling side honestly so you can weigh it against what your servicer offers. We buy houses, and we'll tell you that up front. No fee to talk, and no obligation.
Or call (909) 999-1339, 8 AM to 8 PM Pacific.