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Debunking Myths About Mortgage Assistance

Understanding mortgage assistance options (and how they work) can feel overwhelming.

Get the facts

Let's debunk four common mortgage assistance myths — and explain why it doesn’t hurt to ask about your options as early as possible.

Fact

You are not alone — there is help out there for many different situations stemming from financial hardship, like losing a job or experiencing a disaster. With professional advice from your mortgage servicer – the company that receives your monthly payments – or a housing counselor, you can find proven ways to help overcome your financial stress.

If you want personalized guidance before speaking with your mortgage servicer, reach out to a HUD-approved housing counselor.

Housing counselors can help you explore which mortgage assistance options are best for you based on your current situation. They can also prepare you for conversations about mortgage assistance with your mortgage servicer. Like a coach, they can help you ​​along the way and guide you until you’ve reached your housing goals.

Talk to a housing counselor at no cost to you by calling 1-855-HERE2HELP (855-437-3243) or request an appointment.

Learn more

Fact

The sooner you reach out for advice, the more likely you’ll be able to regain your financial footing without falling too far behind.

Don’t wait to get professional advice from your mortgage provider or a housing counselor. They can explain what options you have before your situation becomes more severe.

Fact

Not all credit scores go down when you take out mortgage assistance. It depends on your individual circumstances. Reach out to your mortgage servicer or a housing counselor as soon as possible to understand how mortgage assistance may impact your individual situation.

Fact

You will not be automatically placed on a mortgage assistance plan. Your servicer is responsible for informing you of your mortgage relief options and determining what options may be appropriate based on your circumstances. You have the final say on whether to accept a particular relief option.

Fact

If you were placed on a forbearance plan but did not request one you should contact your mortgage servicer immediately. You do not have to accept a forbearance plan that you did not request. If you are experiencing a hardship and need assistance, your mortgage servicer should discuss your options.

Different mortgage assistance options

Mortgage assistance comes in many forms. Determining which type is most suitable for you depends on your financial situation — such as how much you owe, how much you earn, and what other expenses you have each month.

Is one of these options right for you?

Refinance—Replace current mortgage with a new loan with new terms

Forbearance—Temporarily reduce or suspend monthly payments

Reinstatement—Pay the total missed amount all at once

Repayment plan—Pay past-due amounts over multiple months

Payment deferral—Delay past-due amounts to end of loan term

Loan modification—Change the terms of your existing loan

Learn more

Mortgage Assistance Options Icon

Is one of these options right for you?

Sale with equity: Sell home, pay off mortgage, and keep leftover amount

Short sale: Sell home for less than remaining mortgage balance

Mortgage Release™: Transfer ownership and all financial responsibility

Learn more

Mortgage Assistance Options Icon

Is one of these options right for you?

Refinance—Replace current mortgage with a new loan with new terms

Forbearance—Temporarily reduce or suspend monthly payments

Reinstatement—Pay the total missed amount all at once

Repayment plan—Pay past-due amounts over multiple months

Payment deferral—Delay past-due amounts to end of loan term

Loan modification—Change the terms of your existing loan

Learn more

Mortgage Assistance Options Icon

Is one of these options right for you?

Sale with equity: Sell home, pay off mortgage, and keep leftover amount

Short sale: Sell home for less than remaining mortgage balance

Mortgage Release™: Transfer ownership and all financial responsibility

Learn more

Mortgage Assistance Options Icon
If you need help, contact your mortgage servicer today

Remember that it’s never too early to get in touch with your mortgage servicer to explore what mortgage assistance options are available to you.

If you don’t feel ready or would like additional support, contact a HUD-approved housing counselor.

As a professional third party, they’ll review your situation and be there with you to advise on mortgage assistance each step of the way, free of charge.

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