Step 1: Determine Exactly Where You Are in the Foreclosure Process

Before deciding how to stop foreclosure, you need to know your actual status.

Do not rely only on how many payments you have missed.

Check:

• Your latest mortgage statement

• Your online mortgage account

• Letters from your servicer

• Certified mail

• Notices of default

• Acceleration notices

• Court documents

• Foreclosure notices

• Trustee notices

• Any notice containing a foreclosure sale date

Call your mortgage servicer and ask directly:

“Has my loan been referred for foreclosure?”

Then ask:

“Has a foreclosure sale date been scheduled?”

Write down the representative’s name, the date and time of the call, and exactly what you were told.

If a sale date already exists, treat that date as urgent.

Do not assume that submitting a letter, making a partial payment, filing a complaint, or speaking with customer service automatically postpones the sale.

For additional emergency steps, review How Can You Stop Foreclosure Fast?.

Step 2: Call Your Mortgage Servicer Immediately

Your mortgage servicer is normally the company that receives your monthly mortgage payments.

Ask to speak with the:

• Loss Mitigation Department

• Home Preservation Department

• Mortgage Assistance Department

• Foreclosure Prevention Department

Different companies use different names.

Tell the representative:

• Why you fell behind

• When your hardship started

• Whether the problem is temporary or long-term

• Whether your income has recovered

• Approximately how much you can afford

• Whether you want to keep the home

Then ask:

“What loss-mitigation options are available for my loan?”

Options may include repayment plans, forbearance, loan modification, short sale, deed-in-lieu of foreclosure, or other programs depending on your loan and circumstances.

Do not end the call until you know exactly how to apply for assistance.

Step 3: Ask for a Complete Loss-Mitigation Application

This is one of the most important steps you can take.

A loss-mitigation application gives your mortgage servicer the information it needs to evaluate you for foreclosure alternatives.

Ask:

“What documents do you need before my application will be considered complete?”

Your servicer may request documents such as:

• Pay stubs

• Bank statements

• Tax returns

• Profit-and-loss statements if you are self-employed

• Unemployment documentation

• Benefit statements

• Household expense information

• Mortgage statements

• Property information

• Hardship documentation

• A hardship letter

Do not assume your application is complete simply because you uploaded documents.

Ask the servicer to confirm whether anything else is missing.

If possible, obtain that confirmation through your secure online account or in writing.

Timing matters. CFPB guidance states that when a servicer receives a complete application more than 37 days before a scheduled foreclosure sale, federal rules generally require the servicer to evaluate the application and provide a written response within 30 days. Additional appeal rights may apply when a complete application is received at least 90 days before the scheduled sale and a loan modification is denied.

Step 4: Send a Strong Mortgage Hardship Letter

Your hardship letter should make your financial situation easy to understand.

You do not need to write a dramatic story.

Your letter should explain:

• What happened

• When it happened

• How it affected your income or expenses

• Whether the hardship is temporary or permanent

• What has changed since the hardship began

• What payment you can realistically afford

• What assistance you are requesting

For example:

“My income was reduced after my work hours were cut in June. I fell behind by two mortgage payments while covering essential household expenses. My hours have now increased, and I can resume my regular mortgage payment beginning October 1. I am requesting review for a repayment plan or any other available home-retention option.”

Supporting documents are just as important as the letter itself.

You can use How to Write a Hardship Letter That Gets Results if you need additional examples.

Most importantly, do not assume that a hardship letter alone stops foreclosure.

Your letter should support your complete mortgage-assistance application rather than replace it.

Step 5: Get Free Foreclosure Help From a HUD-Approved Counselor

You do not have to handle every part of the process by yourself.

A HUD-approved housing counselor can help you:

• Review your finances

• Understand foreclosure alternatives

• Organize your application

• Communicate with your servicer

• Identify missing documents

• Understand available programs

• Recognize foreclosure scams

• Develop an action plan

HUD-approved counseling is generally available at little or no cost.

The CFPB specifically recommends contacting a HUD-approved housing counseling agency when you are having difficulty paying your mortgage.

You can also review RequestLetters Resources when you need additional housing, financial, or legal-help resources.

Your Main Foreclosure Prevention Options

The right option depends on why you fell behind and what you can afford now.

Option 1: Reinstate Your Mortgage

Reinstatement means paying enough to bring the mortgage current.

You may need to pay:

• Missed mortgage payments

• Late charges

• Recoverable foreclosure expenses

• Other authorized charges

Do not estimate the amount yourself.

Ask your servicer for a written reinstatement figure that tells you exactly how much is required and the date through which the amount is valid.

If you are considering paying the mortgage completely rather than simply curing the delinquency, use How to Request a Payoff Letter From Your Bank.

Option 2: Request a Mortgage Payment Plan

A repayment plan may work when your hardship was temporary and you can now afford your regular mortgage payment plus an additional amount toward the missed payments.

For example, suppose you owe $6,000 in missed payments.

Instead of requiring the full $6,000 immediately, your servicer might allow you to repay the arrears over several months while continuing your regular payment.

Only agree to a repayment plan you can realistically maintain.

A plan that looks good on paper but exceeds your actual monthly budget may create another default.

Use How Do I Write a Letter to Request a Mortgage Payment Plan? when you need to make your proposal in writing.

Option 3: Request Mortgage Forbearance

Forbearance can temporarily reduce or pause your mortgage payments when you are experiencing a short-term hardship.

Examples may include:

• Temporary job loss

• Reduced work hours

• Medical expenses

• Natural disaster

• Family emergency

• Temporary disability

• Short-term interruption in income

Forbearance does not normally erase what you owe.

The unpaid amount generally must be addressed later through a repayment arrangement, modification, deferral, or another available option.

CFPB guidance defines forbearance as a temporary pause or reduction in mortgage payments rather than forgiveness of the balance.

If your hardship is expected to end, review 5 Mortgage Hardship Letter Samples for Forbearance before contacting your servicer.

Option 4: Request a Loan Modification

A loan modification changes one or more terms of your existing mortgage.

Depending on your loan and available program, a modification may involve:

• Extending the repayment term

• Changing the interest rate

• Adding certain arrears to the loan balance

• Deferring part of the balance

• Changing the monthly payment

Your goal is usually to create a payment you can maintain over the long term.

If your financial problem is not temporary, a modification may be more appropriate than a short repayment plan.

Use How Do I Write a Loan Modification Request Letter? to prepare your written request.

If your servicer asks for a detailed explanation of your hardship, you can also use Mortgage Hardship Letter Samples.

Option 5: Sell the Home Before Foreclosure

If you cannot realistically afford the mortgage but you have equity in your home, selling may allow you to avoid foreclosure and preserve some of your equity.

Do not wait until the last possible moment.

A normal home sale takes time.

You may need time for:

• Listing

• Showings

• Buyer financing

• Inspections

• Appraisal

• Title work

• Closing

Ask your mortgage servicer for a payoff statement so you can estimate what must be paid at closing.

You can use 7 Mortgage Payoff Letter Templates when requesting the official amount.

Option 6: Ask About a Short Sale

If your mortgage balance exceeds what your home can reasonably sell for, ask your servicer whether a short sale is available.

In a short sale, the servicer may agree to accept sale proceeds that are less than the total mortgage balance.

Do not assume the remaining debt automatically disappears.

Ask in writing:

• Whether the short sale fully satisfies the loan

• Whether you could remain responsible for a deficiency

• Whether additional approval is required

• What documents must be submitted

• How the transaction may be reported

State law and the terms of your agreement can matter.

Option 7: Ask About a Deed-in-Lieu of Foreclosure

With a deed-in-lieu, you voluntarily transfer ownership of the property to the lender or mortgage investor instead of completing a foreclosure.

This generally makes more sense when keeping the property is no longer realistic.

Ask about:

• Eligibility requirements

• Other liens on the property

• Deficiency liability

• Relocation assistance

• Property-condition requirements

• Tax consequences

• Credit reporting

Get the complete agreement in writing before transferring ownership.

What to Do If Your Foreclosure Sale Is Already Scheduled

A scheduled sale changes your priorities.

You should immediately:

1. Confirm the exact sale date and time.

2. Contact your mortgage servicer.

3. Ask whether your loss-mitigation application is complete.

4. Ask what must happen for the sale to be postponed.

5. Contact a HUD-approved housing counselor.

6. Save every confirmation number and document.

7. Check your state’s foreclosure procedures.

8. Consider contacting legal aid or a foreclosure attorney immediately.

Do not rely on verbal promises such as:

“Don’t worry about the sale.”

Ask for written confirmation if your servicer says the foreclosure has been postponed.

CFPB guidance specifically warns that the amount of protection available through loss mitigation can depend on how far in advance of the scheduled foreclosure sale your complete application is received.

Should You File Bankruptcy to Stop Foreclosure?

Bankruptcy can affect foreclosure, but it is not simply another mortgage-assistance application.

Filing a bankruptcy petition generally creates an automatic stay that temporarily stops many collection actions, including many foreclosure proceedings. However, exceptions exist, repeat filings can affect the stay, and creditors may ask the bankruptcy court to lift it.

Chapter 13 may allow some homeowners to address mortgage arrears through a court-supervised repayment plan while continuing current mortgage obligations.

However, bankruptcy has significant legal, financial, and credit consequences.

If your foreclosure sale is approaching and bankruptcy is being considered, this is one situation where getting advice from a qualified bankruptcy attorney or legal-aid organization can be particularly important.

Do not wait until after a foreclosure sale to investigate bankruptcy and assume it can reverse what already happened.

How to Document Everything You Do

Your paper trail can become extremely important.

Create one folder for your mortgage problem.

Keep copies of:

• Mortgage statements

• Foreclosure notices

• Letters

• Emails

• Portal messages

• Hardship letters

• Pay stubs

• Bank statements

• Tax documents

• Applications

• Upload confirmations

• Certified-mail receipts

• Fax confirmations

• Payment receipts

• Servicer responses

Also keep a telephone log.

For each call, record:

• Date

• Time

• Telephone number

• Representative’s name or ID

• Department

• What you requested

• What the representative told you

• Documents requested

• Deadlines

• Confirmation number

• Next action

After an important conversation, use your servicer’s secure message center to create a written record when possible.

For example:

“Thank you for speaking with me today. My understanding is that my loss-mitigation application is missing only my August bank statement and that my foreclosure sale is currently scheduled for November 12. Please confirm whether this information is correct.”

Do Not Fall for Foreclosure Rescue Scams

Financial stress can make you an attractive target for scammers.

Be particularly cautious if someone:

• Guarantees that your foreclosure will be stopped

• Guarantees a loan modification

• Demands a large upfront fee

• Tells you to stop communicating with your mortgage servicer

• Tells you to send mortgage payments to them

• Asks you to sign over your deed

• Pressures you to sign documents you do not understand

• Claims a government affiliation you cannot verify

The CFPB warns homeowners that legitimate foreclosure assistance is available through mortgage servicers and HUD-approved housing counselors without paying a company thousands of dollars for guaranteed results.

Your 7-Day DIY Foreclosure Action Plan

Day 1: Confirm Your Foreclosure Status

Call your servicer.

Find out:

• Amount past due

• Number of missed payments

• Foreclosure status

• Sale date

• Reinstatement amount

• Loss-mitigation status

Day 2: Build Your Financial File

Gather:

• Income documentation

• Bank statements

• Mortgage statement

• Tax return if requested

• Monthly expense information

• Hardship documentation

• Property information

Day 3: Prepare Your Mortgage Hardship Letter

Explain:

• What happened

• When it happened

• Financial impact

• Current income

• What you can afford

• Assistance requested

Keep your explanation factual and concise.

Day 4: Submit Your Complete Application

Use your servicer’s approved method.

This may include:

• Secure online portal

• Fax

• Mail

• Another designated submission method

Save proof of submission.

Then ask:

“Is my loss-mitigation application now complete?”

Day 5: Contact a HUD-Approved Housing Counselor

Ask the counselor to review:

• Your mortgage

• Your delinquency

• Your income

• Your proposed solution

• Your application

• Your foreclosure timeline

If your situation is urgent, tell the counselor immediately that a sale date has been scheduled.

Day 6: Compare Your Available Options

Determine whether your circumstances are better suited to:

• Reinstatement

• Mortgage Repayment Plan

• Mortgage Forbearance

• Loan Modification

• Sale

• Short sale

• Deed-in-lieu

• Another servicer-approved program

Do not choose solely based on which option produces the smallest immediate payment.

Consider whether you can maintain the arrangement long term.

Day 7: Escalate Anything That Is Still Unresolved

If a sale is approaching and you still do not have a clear answer:

• Contact the servicer again

• Ask for escalation or a supervisor

• Contact your HUD counselor

• Review state foreclosure resources

• Contact legal aid

• Consider consulting a foreclosure or bankruptcy attorney

Do not allow several weeks to pass simply because someone told you your file was “being reviewed.”

Common Mistakes That Can Make Foreclosure Harder to Stop

Waiting for the Servicer to Contact You

You should initiate contact as soon as you know you cannot make your payment.

Sending Only a Hardship Letter

Your hardship letter may be important, but it is not necessarily a complete loss-mitigation application.

Ignoring Requests for Additional Documents

Missing one document can delay completion of your application.

Sending Documents Without Saving Proof

Keep upload receipts, tracking numbers, emails, and confirmations.

Assuming a Partial Payment Cancels Foreclosure

Never assume a payment changes your sale status unless your servicer confirms the result.

Agreeing to an Unaffordable Plan

Your goal is not merely to obtain approval.

Your goal is to obtain an arrangement you can actually maintain.

Ignoring Certified Mail

Open everything immediately.

A foreclosure deadline does not disappear because you did not read the notice.