Can't afford your mortgage?

When the monthly payment no longer fits your income, there are usually more options than it feels like. The right path depends on whether the problem is temporary or long-term, how many payments you have missed, your equity position, and your loan type — and acting early consistently produces better outcomes than waiting.

Last reviewed: May 2026 · About this site

What to do in the next 48 hours

Before comparing long-term options, take these three immediate steps:

1. Calculate your actual payment-to-income ratio. Divide your total monthly housing cost (mortgage, taxes, insurance, HOA) by your gross monthly income. Above 35–38% indicates meaningful stress. Above 45% is generally considered a significant hardship level by servicers.
2. Open all mail from your servicer. Many homeowners avoid servicer notices when money is tight. Every unread notice may contain a deadline that — if missed — closes off an option permanently.
3. Call your servicer today. Do not wait to have a perfect plan before calling. Simply say: "I am experiencing financial hardship and want to understand what assistance options are available for my loan." Write down what they tell you, including the representative's name and the date.

Temporary problem or long-term problem?

The single most useful distinction when you cannot afford your mortgage is whether the problem is temporary or structural. Servicers and programs are designed around this difference.

All options — explained briefly

• Contact your servicer first: Ask about all available hardship programs before any other step. Servicers are required by federal regulation to evaluate complete hardship applications before foreclosure can proceed.
• HUD-approved counseling: Free. A counselor reviews your full situation, explains options, and can accompany you through the servicer conversation. Find one at hud.gov/housingcounseling.
• Forbearance: Temporarily pauses or reduces your payment. You still owe the amount not paid — it must be resolved later through a repayment plan, deferral, or modification. Best for short-term hardships.
• Repayment plan: Catch up on missed payments over 3–6 months by adding a portion to each regular payment. Works only if your income has stabilized enough to handle the extra amount.
• Loan modification: Permanently changes loan terms — rate, term length, or payment structure — to make the payment affordable long-term. Requires hardship documentation and servicer approval. See our refinance vs modification guide.
• Refinance: Replaces your loan with a new one, potentially with better terms. Only available if you qualify — sufficient credit, income, and equity. Less likely to be available if you are already behind.
• Sell the home: If the payment is permanently unaffordable and equity exists, selling protects that equity. A planned sale is almost always better than foreclosure for your credit and finances.
• Short sale: If the home is worth less than you owe, your servicer may approve a short sale. Better for your credit than foreclosure and avoids potential deficiency judgments in many states.

Warning signs you should not wait

If any of the following apply, act immediately rather than continuing to monitor the situation:

• You are already 30 or more days late on a payment.
• You are using credit cards or other loans to make the mortgage payment.
• Your total housing cost exceeds 40% of gross monthly income.
• You received formal default notices or foreclosure-related letters from your servicer or a court.
• Your hardship is likely to last more than 3 months.
• You have missed more than one payment without contacting your servicer.

What to say when you call

Use this language when calling your servicer: "I am experiencing a financial hardship and I am requesting a review for available loss-mitigation options. My loan type is [FHA/conventional/VA/USDA]. What programs are available, what documents do you need, and what are the deadlines?" This phrasing signals you know your rights and typically routes your call to the loss-mitigation department rather than general customer service.