A few weeks ago, someone we had helped purchase a home several years earlier called us because they had fallen behind on their mortgage. A layoff had left them without a job for several months, and they had missed multiple payments. They had been communicating with their mortgage company, but they were understandably confused by the letters, terminology, and choices in front of them.
They did exactly the right thing: they asked for help.
That is what we are here for. Our relationship with clients is not limited to helping them buy or sell a house. We want to be lifelong housing advisors as life ebbs and flows. In this case, the homeowner found new employment and began moving forward again. During a frightening period, we were able to help them understand their choices and confirm that taking action was the right way to protect the home where their family lived.
The short answer: If you have missed a mortgage payment, do not ignore it. Contact your mortgage servicer promptly, identify your loan type, ask which assistance options may apply, and keep written records of every conversation. Depending on the loan and your circumstances, possible options may include a repayment plan, temporary forbearance, deferral, or loan modification.
Watch: What Should You Do If You Missed a Mortgage Payment?
What should you do first after missing a mortgage payment?
Start by contacting the company that services your mortgage—the company listed on your mortgage statement and the one that receives your payments. Explain what happened, whether the hardship is temporary or ongoing, and whether your income has resumed.
Also confirm what type of loan you have. The programs available to you can vary based on the loan, the investor or agency connected to it, your payment history, and your mortgage servicer’s guidelines.
Before the call, gather:
- Your most recent mortgage statement
- Any letters or notices you have received
- Basic information about your income and hardship
- The dates and amounts of missed payments
- Notes from any previous conversations with the servicer
Ask the servicer to explain every option in plain language, including what happens to missed amounts, how your future payment could change, and whether there are deadlines or documents you must submit.
Could a repayment plan help you catch up?
A repayment plan may allow you to repay the past-due amount gradually by adding a portion to your regular monthly payment for a set period.
For example, if one missed payment totaled $2,000, a hypothetical plan might add $200 to the normal payment for ten months. That example is only an illustration; the actual amount and term would be determined by the servicer and the applicable program.
A repayment plan may be worth discussing when your income has recovered and you can manage both the regular payment and an additional amount each month.
What is temporary mortgage forbearance?
Forbearance may temporarily pause or reduce mortgage payments while you recover from a hardship such as a job loss, injury, divorce, or death in the family.
Forbearance does not usually erase the missed amounts. Before agreeing to it, ask exactly how and when those amounts will need to be repaid. The answer may depend on your loan and the options available when the forbearance ends.
The Consumer Financial Protection Bureau explains that mortgage forbearance arrangements are made through your lender or servicer and can temporarily pause or reduce payments. Read the CFPB’s explanation of mortgage forbearance.
Could missed payments be deferred?
A deferral may move some or all of the missed amount to a later point. Depending on the program, that balance might become due when the home is sold, the mortgage is refinanced, or the loan reaches maturity.
Do not assume that a deferral simply makes the missed payments disappear. Ask the servicer to show you—in writing—where the deferred amount will go and when it will be due.
What does a loan modification change?
A loan modification permanently changes one or more terms of the existing mortgage. Depending on eligibility and program rules, it may change the interest rate, extend the loan term, add past-due amounts to the balance, or otherwise restructure the payment.
A modification is not automatic, and the exact terms vary. Ask for a written explanation of the new payment, interest rate, loan length, total balance, and long-term cost before accepting it.
Does falling behind mean you have to sell your home?
No. Selling is not automatically the best answer.
While you work with the mortgage servicer, we can prepare an equity analysis to help you understand the home’s estimated market value, the mortgage balance, and what a sale might look like if selling becomes necessary. That gives you information—not pressure.
Sometimes keeping the home is realistic. Sometimes selling before the situation becomes more serious may protect the equity a family has worked hard to build. Refinancing or accessing equity may also be discussed with qualified lending professionals, although availability depends on equity, credit, income, delinquency status, and lender guidelines.
The goal is to understand the choices early enough to make a thoughtful decision instead of a panicked one.
How can you avoid mortgage-relief scams?
Be especially careful with anyone who:
- Guarantees they can stop foreclosure or modify your loan
- Pressures you to act immediately
- Demands a large upfront payment
- Tells you to stop communicating with your mortgage servicer
- Asks you to sign over the deed or make payments to someone other than the servicer without verified legal guidance
If you want independent assistance, a HUD-participating housing counseling agency may be able to help. Find a housing counselor through the CFPB.
Frequently asked questions
Will one missed mortgage payment ruin my credit?
A late or missed payment can affect your credit, but the reporting and impact depend on timing and circumstances. Contact the servicer promptly rather than waiting for additional payments and notices to accumulate.
Should I stop paying while I apply for assistance?
Do not change or stop payments based on assumptions. Ask the servicer for written instructions specific to your account and proposed assistance option.
Can the MGW Team negotiate with my mortgage company?
We are not your lender, attorney, or financial advisor, and we cannot promise a particular mortgage outcome. We can help you understand your home’s estimated equity, think through housing and sale scenarios, and connect the real-estate side of the decision to the information you receive from qualified professionals.
Please do not wait
No one is perfect. Job loss, illness, divorce, and other major life changes happen. Asking for help is not a failure—it is a practical step toward protecting your home, your equity, and your future options.
If you or someone you know has fallen behind and needs help understanding the real-estate side of the situation, contact the MGW Team at 610-310-6408. We serve homeowners in Pennsylvania and North Carolina and are here to help you make a calm, informed housing decision.
This article provides general educational information and is not legal, tax, lending, or financial advice. Mortgage-assistance programs and eligibility vary. Contact your mortgage servicer and qualified professionals regarding your specific circumstances.
