Seller guide 004
Behind on mortgage payments? A homeowner’s action plan
Missing payments does not mean foreclosure happens tomorrow, but delay reduces options. Open every notice, call the loan servicer, get free independent help, and track the actual state and court deadlines before discussing a sale.
The short answer
Call the servicer and a HUD-approved housing counselor before assuming you must sell.
The Consumer Financial Protection Bureau says servicers generally cannot make the first foreclosure notice or filing until a borrower is more than 120 days delinquent, but important exceptions and state-specific steps can apply. A sale form or verbal promise from a buyer does not stop any deadline.
Free HUD-approved counselors can help you understand retention and exit options. If selling becomes the best fit, you still need a realistic mortgage payoff, closing timeline, title review, and written contract that can complete before the controlling deadline.
01
Do these five things today
- 01
Open every letter, email, court paper, and notice; write the received date on each item.
- 02
Call the mortgage servicer using the number on your statement, not a number supplied by an unsolicited caller.
- 03
Ask for the total past-due amount, current payoff, foreclosure status, next deadline, and available loss-mitigation application.
- 04
Call a HUD-approved housing counselor at 800-569-4287 or use the official HUD/CFPB search.
- 05
Create a one-page deadline log and keep the names, dates, confirmation numbers, and documents from every conversation.
Selling may be one exit option. It should not replace free, independent information about ways to keep the home, lender requirements, court rights, or state deadlines.
02
Find out exactly where the loan stands
Practical worksheet
Mortgage deadline tracker
Ask the servicer or a qualified adviser to confirm each entry. Do not guess from a generic online timeline.
- Delinquency
- Number of payments missed and total amount needed to bring the loan current.
- Payoff
- Written amount to satisfy the loan through a specific date, including fees.
- Loss mitigation
- Application status, missing documents, review dates, and appeal rights if any.
- Foreclosure
- Whether a first filing occurred and the case, trustee, or attorney contact.
- Sale date
- Scheduled date, if any, and the official source that confirmed it.
- Other claims
- Taxes, HOA, second loans, judgments, bankruptcy, or liens affecting title.
03
Ask about options that may let you keep the home
Depending on the loan, investor, hardship, income, and timing, a servicer may evaluate repayment, forbearance, deferral, modification, or other loss-mitigation options. Availability is not guaranteed, and the same label can work differently across loan programs.
Submit requested documents through a traceable channel and keep copies. Ask whether the application is complete, what decision timeline applies, and what happens to foreclosure activity during review. A housing counselor can help organize the request and communicate with the servicer.
04
Understand exit options before choosing one
Sell the property
- A standard or as-is sale may preserve remaining equity if it can close in time
- Price must cover payoff and closing obligations unless lienholders approve less
- The contract alone does not pause foreclosure
Lender-approved exit
- A short sale may require lender review when proceeds cannot cover the debt
- A deed-in-lieu transfers the property under lender-approved terms
- Tax, credit, deficiency, and relocation consequences need independent review
05
Test whether a sale can actually close
Start with a current written payoff, not the last loan statement. Add property taxes, HOA balances, junior loans, judgments, closing charges, moving needs, and any cost required by the selected sale route. Compare that total with a conservative sale price and timeline.
If the likely proceeds are short, contact the servicer and closing professional early. A buyer’s willingness to sign does not guarantee that liens can be released or that lender approval will arrive before a scheduled sale date.
06
Pause for these foreclosure-relief warning signs
- Upfront fees for mortgage-relief help or a guarantee that foreclosure will be stopped.
- Instructions to stop communicating with the servicer or send mortgage payments elsewhere.
- Pressure to sign over the deed, transfer title, or become a renter without independent legal advice.
- A request to sign blank documents or paperwork you are not allowed to read.
- Claims that a purchase agreement, bankruptcy filing, complaint, or modification request automatically cancels every deadline.
METHOD
How this guide was prepared
HouseResolve reviewed the primary consumer and government sources listed below, then built an original decision process around the questions a property seller can act on. The guide is national in scope and deliberately avoids inventing universal prices, deadlines, legal outcomes, or state rules.
Real-estate, probate, foreclosure, landlord-tenant, insurance, disclosure, title, and tax rules can vary by property and jurisdiction. Use the worksheet to organize facts, then involve the appropriate licensed or qualified professional when a document, deadline, safety issue, or legal right is unclear.
SOURCES
Primary and consumer references
Sources were checked August 1, 2026. Confirm current requirements for your property and state.
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