Help With Mortgage Arrears: What to Do Before Things Spiral

Falling behind on your mortgage can feel overwhelming fast. One missed payment becomes two, late fees start stacking up, letters arrive from the servicer, and suddenly the word foreclosure starts appearing in your mail.

But mortgage arrears do not automatically mean you are going to lose your home.

“Mortgage arrears” simply means you are behind on your mortgage payments. The key is to act before the arrears become unmanageable. The earlier you speak with your mortgage servicer and ask for help, the more options you usually have.

The Consumer Financial Protection Bureau says homeowners who cannot pay their mortgage should contact their mortgage servicer right away and also reach out to a HUD-approved housing counseling agency for free expert help. (Consumer Financial Protection Bureau)

First: Do Not Ignore the Problem

It is tempting to avoid calls, emails, and letters when money is tight. That reaction is human. But silence can make mortgage arrears worse.

Your mortgage servicer may have options, but they typically need information from you first: your income, expenses, reason for hardship, and whether the problem is temporary or long-term. The Federal Trade Commission also advises homeowners struggling with payments to talk to their lender or servicer as soon as possible to understand available options. (Consumer Advice)

In other words, the first goal is not to have the perfect solution. The first goal is to get the conversation started.

What Help Is Available for Mortgage Arrears?

The right option depends on how far behind you are, whether your income has recovered, and whether you can afford your regular monthly payment going forward.

Option	Best For	How It Works
Repayment plan	Temporary hardship that has ended	You pay your regular mortgage plus extra each month until the arrears are cleared
Forbearance	Short-term hardship	Payments are paused or reduced temporarily, but the missed amount still has to be repaid later
Loan modification	Long-term affordability problem	The servicer changes loan terms to make payments more manageable
Deferral or partial claim	Borrowers who can resume normal payments	Missed payments may be moved to the end of the loan or handled separately, depending on loan type
Sale, short sale, or deed in lieu	Home is no longer affordable	These may help avoid a completed foreclosure if keeping the property is not realistic

Forbearance can be useful, but it is not payment forgiveness. The CFPB explains that mortgage forbearance temporarily pauses or reduces payments, and borrowers must still repay the missed amounts later. (Consumer Financial Protection Bureau)

When Does Foreclosure Become a Risk?

Foreclosure rules vary by state, but federal mortgage servicing rules generally prevent a servicer from making the first notice or filing for foreclosure until a borrower is more than 120 days delinquent. (Consumer Financial Protection Bureau)

That 120-day window matters. It gives many homeowners time to apply for help before the legal foreclosure process begins.

But once you are several months behind, the situation becomes much more urgent. At that point, you should ask your servicer these questions directly:

“Is my loan in foreclosure?”

“Is there a sale date scheduled?”

“What amount is needed to reinstate the loan?”

“Am I eligible for loss mitigation?”

“Is my application complete?”

That last question is especially important. Under CFPB servicing rules, a complete loss mitigation application means the servicer has received all the information it requires to evaluate you for available options. (Consumer Financial Protection Bureau)

Get Free Help From a Housing Counselor

You do not have to figure this out alone.

HUD says there are programs to assist homeowners who are at risk of foreclosure or struggling with mortgage payments. (HUD.gov) A HUD-approved housing counselor can help you understand your options, organize paperwork, communicate with your servicer, and avoid scams.

This is especially helpful if you feel confused by mortgage terms like “loss mitigation,” “reinstatement,” “escrow shortage,” or “notice of default.” A counselor can translate the process into plain language and help you avoid missing deadlines.

The CFPB also notes that housing counselors can help homeowners talk to mortgage companies and create a tailored plan at no cost. (Consumer Financial Protection Bureau)

Watch Out for Mortgage Rescue Scams

Unfortunately, people behind on mortgage payments are prime targets for scammers.

Be careful with anyone who guarantees they can stop foreclosure, tells you to stop talking to your mortgage company, asks you to sign over your deed, or demands large upfront fees. The FTC warns that foreclosure rescue companies often promise help but can turn a homeowner’s distress into disaster. (Federal Trade Commission)

A simple rule: real help should make the process clearer, not pressure you into secrecy or rushed decisions.

What to Do This Week

Start by calling your mortgage servicer and asking for the loss mitigation department. Explain that you are in arrears and want to know every available option to bring the loan current or avoid foreclosure.

Then gather your documents: recent pay stubs, bank statements, tax returns, benefit letters, unemployment records, medical bills, hardship letters, and any mortgage notices you have received.

Next, contact a HUD-approved housing counselor. This gives you a second set of eyes before you agree to a repayment plan, modification, sale option, or foreclosure alternative.

Final Thought

Mortgage arrears are serious, but they are also common—and there are systems designed to help homeowners deal with them.

The biggest mistake is waiting until the options disappear. The best move is to communicate early, document everything, and ask for help from credible sources.

You may not be able to undo the missed payments overnight, but you can take control of what happens next.