Mortgage and Housing Help

Call the company that collects your mortgage payments as soon as you expect trouble. Explain your diagnosis and how your income has changed, then ask about forbearance, which temporarily pauses or reduces payments, and loan modification, which permanently changes loan terms. Servicers usually need a hardship letter, proof of income and recent bank statements. Ask how any paused payments will be repaid when forbearance ends, since some plans require a lump sum and others add the amount to the loan. Do not stop paying based on a phone conversation alone. Wait until you have the agreement in writing.

HUD-approved housing counseling agencies offer free or low-cost guidance on mortgage problems, budgeting and avoiding foreclosure. A counselor can review your situation, explain options your servicer may not mention, help assemble paperwork and sometimes contact the servicer with you. Renters can ask counselors about emergency rental assistance and tenant protections. Be cautious of companies that charge upfront fees for mortgage relief, ask you to sign over your deed or tell you to stop communicating with your lender. Those are common signs of foreclosure rescue scams that can cost you your home.

Some states and cities run emergency mortgage or rental assistance programs, especially for people with sudden medical hardship. Many areas offer property tax relief for older or disabled homeowners, which can lower yearly costs. If stairs or bathrooms make your home unsafe, ask about home modification grants or loans for ramps and grab bars. Veterans may qualify for housing help through the VA. A hospital social worker or your local area agency on aging can point you to programs and help with applications, which often require proof of income and a letter from your doctor.

1. 1

   Call your mortgage servicer before missing a payment and ask about forbearance or loan modification.

2. 2

   Gather a hardship letter, proof of income and recent bank statements for your servicer.

3. 3

   Contact a HUD-approved housing counseling agency for free, independent guidance.

4. 4

   Ask your social worker about local mortgage, rental or property tax assistance programs.