Mortgage Relief
Get a Free Savings Quote* & Consultation
Financial education and referrals—so you can choose with confidence.
Mortgage Relief
Falling behind on a mortgage is stressful—but you may have options. Money Student is a financial education and referral platform. We explain common loss-mitigation paths and, if you choose, can introduce you to independent HUD-approved housing counselors and/or attorneys who handle mortgage workouts and foreclosure defense in your state.
What is “loss mitigation”?
“Loss mitigation” refers to tools your servicer or investor may use to help you avoid foreclosure or reduce loss if you’re in hardship. Availability depends on your loan type (FHA/VA/USDA, Fannie/Freddie, or portfolio), investor rules, state law, and your documentation.
Options that may be available
• Repayment Plan: Catch up past-due amounts over several months while making your regular payment.
• Forbearance: Temporary payment pause or reduction due to hardship; missed amounts are resolved later (not forgiven).
• Loan Modification: Change to loan terms (rate, term, and/or capitalization of arrears) to create a sustainable payment.
• Partial Claim / Deferred Balance (FHA and some investors): Past-due amounts moved to a separate, no-interest junior lien payable at payoff/refi/sale.
• Reinstatement: Bring the loan current in a lump sum (often used when funds become available).
• Short Sale / Deed-in-Lieu: If keeping the home isn’t realistic, options to exit while potentially limiting deficiency exposure (varies by state and investor).
• State & Local Assistance: Some states and municipalities periodically offer homeowner assistance funds or mediation programs.
If a foreclosure case has started, timelines and homeowner rights vary by state (judicial vs. non-judicial). Speaking with a local attorney can help you understand deadlines, defenses, and mediation or cure opportunities.
Getting ready: what to have handy
• Recent mortgage statements and escrow analysis (if any)
• Proof of income (pay stubs, benefits letters, P&L if self-employed)
• Bank statements (typically 2–3 months)
• Hardship letter (brief explanation, dates, and what changed)
• Property tax and homeowners insurance details
• Any legal notices received (NOD, LIS, sale notices)
How Money Student helps
• Education first: We outline how these programs generally work and what might fit given your goals (keep, cure, or exit).
Referrals, not services: At your request, we can connect you with independent HUD-approved housing counselors (often free/low-cost) or licensed attorneys experienced in loan workouts and foreclosure defense. Your agreement, if any, is directly with that provider.
If foreclosure proceeds anyway
A foreclosure can affect housing access, credit, and timelines to qualify for a new mortgage. Exact impacts depend on your loan program and state law. An attorney or HUD counselor can help you understand likely outcomes and any opportunities to cure, reinstate, modify, sell, or postpone a sale date.
This page provides general financial education—not legal, tax, or accounting advice. Program availability and results vary by servicer, investor, documentation, and state law. If you’ve received legal notices or a sale date, consider speaking with a licensed attorney in your state promptly.