If you are struggling to keep up with your mortgage payments, you’re not alone. Across the country, many homeowners face financial hardship that puts their homes at risk. The good news is that there are government programs that help homeowners avoid foreclosure, especially in 2025.
These programs offer various forms of mortgage relief, from suspended payments to direct financial aid. Whether you’re facing job loss, illness, or another hardship, it’s important to act early. The sooner you explore foreclosure prevention options, the more likely you are to keep your home.
A financial hardship is any event that makes it difficult to keep up with monthly mortgage payments, like a medical emergency, job loss, or natural disaster. When you fall behind on your mortgage loan, your account may become delinquent, and you risk losing your home.
But hardship doesn’t mean foreclosure is inevitable. Government programs exist to assist homeowners during tough times, often covering some of your missed payments or giving you time to recover.
The Homeowner Assistance Fund (HAF) was created by the U.S. Department of the Treasury through the American Rescue Plan Act. It provides funds to assist homeowners with qualified expenses like:
The goal is to prevent foreclosure for those experiencing financial hardship after January 21, 2020. Each state manages its own HAF funds, which are distributed through housing agencies.
You can learn more about HAF and how to apply in our full guide:
What is the Homeowner Assistance Fund and How to Apply
To qualify for government help, homeowners must meet specific eligibility requirements, such as:
Some programs also require that you demonstrate a plan to pay future mortgage payments or remain mortgage currentafter receiving aid.
Every program has its own application process, but the general steps are:
Help is available. A HUD-certified housing counselor can walk you through the paperwork and help you understand your options.
If you are overwhelmed by the process, seek help from housing counselors. These professionals offer foreclosure prevention counseling at no cost.
They’ll help you:
Connect with a HUD-certified housing counselor through Credit.org today.
The U.S. Department of Housing and Urban Development (HUD) plays a major role in foreclosure prevention. Through its support of programs like FHA loans, local housing initiatives, and enforcement of regulations, HUD works to ensure struggling families receive the aid they need.
Programs under HUD’s umbrella often coordinate with state-level HAF administrators and nonprofits. These agencies are in place to assist families before foreclosure becomes unavoidable.
Learn more directly from HUD’s official foreclosure help center.
Foreclosure prevention options vary depending on your lender and the type of mortgage loan you have. Options might include:
The key is to contact your servicer early and communicate clearly. Lenders are often willing to negotiate if they see you’re trying to avoid default. You may be able to sign a new agreement or modified payment plan that helps you stay on track and avoid foreclosure.
If your foreclosure process has already started, you may still qualify for help.
Depending on the state, you may be able to:
Even during foreclosure proceedings, HAF or other programs may intervene to stop the sale date, especially if your delinquency is recent and you’re actively working with your lender.
Selling your property voluntarily may be a better option than waiting for foreclosure. If you have equity, you can sell your home, pay off the mortgage, and avoid long-term damage to your credit.
If you purchased the home in the past few years and the value has increased, this could be a smart move.
A housing counselor can help you assess this option, especially if you’re not eligible for other types of aid or need money to relocate after the sale.
We cover these options in our article: The HAFA Program: Foreclosure Alternatives for Homeowners
Yes. In addition to covering your mortgage loan, HAF funds can also help with other qualified expenses such as:
This broader support helps borrowers stay in their homes, especially when they’re behind on more than just their mortgage. If you’re not yet in default but having trouble keeping your mortgage current, HAF may still be able to help.
Special programs exist for:
Each group may access additional foreclosure relief or counseling services tailored to their situation.
Veterans can also get help directly from the VA’s mortgage payment support team.
Some government-backed initiatives, such as the Home Affordable Refinance Program (HARP) and the Home Affordable Foreclosure Alternatives (HAFA) program, have officially expired. However, they provide good examples of how foreclosure prevention can work through coordinated federal action.
For instance, HARP helped homeowners refinance into more affordable loans, while HAFA offered solutions like short sales and deed-in-lieu options to avoid foreclosure. Today’s housing counselors may reference these expired programs as examples of what newer aid packages might look like.
Even if these specific programs aren’t available anymore, you can still explore modern options with the help of a counselor. Learn more about HARP, the Principal Reduction Alternative, HAFA, HAFA Short-sale guidelines for Realtors, and related HAFA incentives on Credit.org.
Unfortunately, scammers often target homeowners in distress. Here are some tips to stay safe:
For additional information, visit USA.gov’s foreclosure avoidance page, or talk to a HUD-certified housing counselorto make sure your contact is legitimate.
The U.S. Treasury created and funded the Homeowner Assistance Fund, which is now run by state-level programs. These agencies continue to offer HAF assistance to qualifying homeowners across the country.
States have until 2026 to spend remaining funds, so 2025 is still a crucial time to apply.
Explore the Treasury’s official program info here: Homeowner Assistance Fund – U.S. Treasury
If you’re falling behind on your mortgage:
In most cases, early action makes all the difference. Even if you’re already in default, you still have time to review your options.
If you’re struggling to make your mortgage payments and want to avoid foreclosure, speak with a nonprofit counselor right away.
At Credit.org, our team of HUD-certified housing counselors is here to support you with:
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