What to Do When You Can't Afford Your Mortgage Payments

Falling behind on your mortgage can feel overwhelming and isolating. Whether your financial situation changed due to a job loss, unexpected medical bills, or rising living costs, being unable to make your monthly payment is a serious challenge—but you’re not out of options. Acting quickly can help you avoid foreclosure, limit damage to your credit, and regain control of your finances. 

While it’s always a good idea to check in with a financial professional, there are several steps you can take right now to regain control, avoid foreclosure, and protect your financial future. 

Step 1: Assess Your Financial Situation

Start by getting a clear picture of your finances. Review your income, necessary expenses, debts, and how much you owe on your mortgage. Is your hardship short-term (like a temporary loss of income) or long-term (like a permanent reduction in earning capacity)? How far behind are you on payments?

Understanding your current financial position helps determine whether you can catch up, need temporary relief, or should consider more permanent solutions like selling your home.

Step 2: Contact Your Lender Immediately

Don’t wait for missed mortgage payment notices to pile up. Contact your lender as soon as you realize you can’t pay your mortgage as usual. Lenders often have programs in place for borrowers facing financial hardship, but the earlier you reach out, the more options you’ll likely have.

Before making the call, gather the following:

• A written explanation of your financial hardship
• A list of your monthly expenses and income
• Recent pay stubs, tax returns, or benefit statements

Ask your lender about mortgage relief programs, forbearance, loan modifications, or repayment plans that may be available to you.

Step 3: Explore Mortgage Relief Options

Lenders and government programs offer a range of relief solutions designed to help homeowners stay in their homes or avoid foreclosure.

Forbearance

Temporarily pauses or reduces your payments. This is ideal for short-term financial struggles, but you’ll still owe the missed mortgage payments later.

Loan modification

Permanently changes the terms of your loan (like reducing the interest rate or extending the term) to lower your monthly payments.

Refinancing

Replacing your current loan with a new one at better terms—ideal if you still have decent credit and some home equity.

Repayment plan

Spreads out missed mortgage payments over a period of time, added onto your regular monthly payments.

Government and nonprofit assistance

HUD-approved housing counselors and programs at the state or federal level can help guide you through your options and assist with applications—at no cost.

Step 4: Consider Selling Your Home

If you simply can’t pay your mortgage anymore, selling your home may be the most practical solution.

• Traditional home sale: If you have enough equity, listing your home with a real estate agent can help you sell at market value. This is ideal if you have time to wait and your home is in good condition.
• Cash home buyers: If you’re facing foreclosure or need to sell fast, a cash buyer can purchase your home quickly—often in days—with no need for repairs, inspections, or showings.

Selling can help you avoid foreclosure, preserve your credit as much as possible, and give you a fresh start without the weight of a burdensome mortgage.

Step 5: Look Into Alternative Income or Housing Solutions

If you’re trying to stay in your home, you may be able to generate income or reduce costs. Consider these options:

• Rent out part of your home to earn extra money (e.g., a spare room or basement).
• Take on a roommate to help with mortgage and utility costs.
• Move in with family temporarily and rent your home out entirely.
• Apply for rental or utility assistance programs through local nonprofit or government organizations.

These options can help bridge the gap while you stabilize your finances.

Step 6: Protect Your Credit as Much as Possible

Missed mortgage payments and foreclosure filings can significantly hurt your credit. If possible:

• Stay in communication with your lender to avoid default.
• Avoid taking on new debt.
• Make partial payments if you can (with lender agreement).
• Monitor your credit report for accuracy and stay alert to identity theft or errors.

Rebuilding your credit is possible over time, especially if you take proactive steps now to minimize damage.

Step 7: Know When to Seek Professional Help

If your situation is complex, confusing, or feels unmanageable, professional help is available. You may benefit from:

• HUD-approved housing counselors who can guide you through your options for free.
• Financial advisors who can help restructure your budget or evaluate long-term strategies.
• Attorneys specializing in foreclosure or real estate if you’re at risk of losing your home.

Be cautious of any service that charges upfront fees or promises a guaranteed fix—these are common signs of scams targeting vulnerable homeowners.

A Fresh Start Begins With the Right Exit Strategy

If you've explored all your options and the numbers still don’t add up, selling your home might be the most financially responsible path forward—especially if your income isn’t expected to bounce back anytime soon or the cost of homeownership has simply become unmanageable.

At 800CashToday, we buy homes in any condition and help you close fast—often within days. There are no agent fees, no closing costs, and no delays. You get a fair cash offer and a predictable, hassle-free process so you can move forward with confidence.

If you’re ready to explore a better way out, 800CashToday is here to help.

References:
Consumer Financial Protection Bureau. If I can’t pay my mortgage loan, what are my options?.