Financial Hardship · Behind on Payments
Behind on Mortgage Payments? 7 Moves to Make Before It Becomes Foreclosure
Missed one or two mortgage payments? Here is exactly what to do, who to call, and how to keep the most options open before a foreclosure is filed.
Quick answer
If you are behind on your mortgage, call your servicer immediately, ask about forbearance, repayment plans, and loan modification, and contact a HUD-approved housing counselor. If keeping the home is not realistic, selling early, before a foreclosure is filed, protects the most equity and credit.
Falling behind on a mortgage usually starts with something outside your control: a layoff, a medical bill, a divorce, or a payment that jumped. The months between your first missed payment and a foreclosure filing are the most valuable time you have. Here is how to use them.
1. Call your servicer before they call you
Servicers have more flexibility early. Explain what happened, whether it is temporary or permanent, and ask specifically about forbearance, repayment plans, and loan modification. Take notes on every call: date, name, and what was promised.
2. Get free help from a housing counselor
HUD-approved housing counselors can review your budget, help with modification paperwork, and explain your options at no or low cost. Wisconsin homeowners can also check whether state assistance programs are currently accepting applications.
3. Build a real budget
List your take-home income and every fixed expense. If the mortgage is more than you can afford even after the hardship ends, a modification may only delay the problem. Being honest here saves you months of stress.
4. Know your equity number
Request a payoff statement and get a sense of what the home would sell for today. Equity is your safety net. The longer you fall behind, the more fees, interest, and legal costs eat into it.
5. Compare your exit options
| Path | Time to resolve | Keeps the home? | Typical cost |
|---|---|---|---|
| Repayment plan | 3-12 months | Yes | Higher payments short-term |
| Loan modification | 2-6 months to approve | Yes | Possibly longer loan term |
| List with an agent | 2-6 months | No | Commissions, repairs, carrying costs |
| Cash sale | 1-4 weeks | No | Below full retail price, no fees or repairs |
6. Protect yourself from scams
Be cautious of anyone who charges upfront fees to negotiate with your lender or asks you to sign over your deed. In Wisconsin, you can verify lenders and report concerns to the Department of Financial Institutions.
7. Decide before the deadline decides for you
If you can keep the home affordably, fight for it. If you cannot, selling while you are only a few payments behind usually means paying off the loan in full, avoiding a foreclosure judgment, and keeping the remaining equity.
How a cash sale fits in
A cash buyer can close quickly, which stops late fees and interest from piling up. The past-due balance and payoff are handled at closing through a licensed title company, and you leave with whatever equity remains. Whatever you decide, getting a no-obligation offer gives you a concrete number to compare against every other choice.
Frequently asked questions
How many mortgage payments can I miss before foreclosure starts?
It depends on your loan and servicer, but under federal servicing rules most servicers cannot make the first foreclosure filing until a borrower is more than 120 days delinquent. Do not wait for that point to act.
Is forbearance the same as forgiveness?
No. Forbearance pauses or reduces payments for a period, but the missed amount still has to be repaid through a lump sum, repayment plan, or modification.
Can I sell my home if I am behind on payments?
Yes. The past-due amount is paid from the sale proceeds at closing, along with the rest of your mortgage balance.
Sources and helpful resources
This article is general education, not legal, tax, or financial advice. Laws and programs change; confirm details with a licensed professional or the agencies linked above.