Facing a financial hardship can feel overwhelming, especially when you’re worried about keeping your home. One of the most important steps you can take is reaching out to your mortgage servicer as early as possible. Clear communication can open doors to options like repayment plans, forbearance, or loan modifications that might help you avoid foreclosure. In this guide, we’ll walk you through how to talk to your loan servicer, what information to gather, and what to expect from the process.
Your mortgage servicer is the company that manages your loan, not always the same institution that gave you the mortgage. They collect your payments, manage your account, and are your point of contact when trouble arises. Whether you’re dealing with job loss, medical expenses, or other hardships, maintaining good communication with your servicer is key to protecting your home.
The Consumer Financial Protection Bureau recommends contacting your servicer before you miss a payment. The earlier you start the conversation, the more options may be available to you.
When you first get a welcome letter from your mortgage servicer or new loan servicer, don’t ignore it. This document confirms who is managing your mortgage loan and how to communicate with them. It will list your account number, payment details, and contact information.
Save this letter and record the date you received it. If you’re not sure who your loan servicer is, call the number on the letter or look it up using the CFPB’s online tool.
Many people confuse their lender with their servicer. Your loan servicer might change over time; you may receive a welcome letter when your loan is transferred to a new company. This document will explain your new payment instructions and provide contact information. It’s essential to read it carefully and store it with your other documents.
If your mortgage loan has been transferred recently, confirm who your current servicer is before initiating any conversations. Knowing the correct company helps avoid confusion and ensures your requests are processed correctly.
If you’re having trouble paying your monthly mortgage payments, don’t wait for a missed payment to act. Many families wait too long, hoping their situation will improve. Unfortunately, falling behind can lead to fees, damage to your credit, or even foreclosure.
Explain your circumstances, ask about available services, and create a simple list of your bills, income, and hardship details before the call. Some servicers offer aid like repayment plans or short sale options to help you avoid foreclosure. Many also offer resources through HUD-certified counselors or programs like HAFA.
Start by writing down a list of expenses and identifying where your income is falling short. You don’t need a perfect budget, just enough to explain your situation to the servicer. If you’re unsure how to organize this, use this free hardship letter template to start the conversation.
When you call your mortgage company, be honest and prepared. Have these details ready:
The New York Department of Financial Services recommends writing down the date and time of every conversation, the name of the person you spoke to, and a summary of what was discussed.
Servicers are required to review your account and discuss possible options. Depending on your situation, you may qualify for:
Each option has benefits and risks. To learn more, check out our guide to tips for modifying your loan.
Your loan servicer may offer several ways to stay in your home, depending on your situation. Some homeowners consider refinance options, but this only works if your credit is strong and you’re not far behind.
If you’re juggling debt, talk to a HUD-approved counselor about building a plan that works. A counselor can help you figure out how much you owe, what programs apply, and which strategies might offer the best outcome. They can also give advice about writing hardship letters or choosing between a repayment plan, short sale, or loan modification.
Ask your servicer to break down the cost of each option—including fees or long-term payment changes—so you can make the best decision for your situation.
If you fall behind on your payments and don’t reach out to your servicer, the foreclosure process may begin. This is a legal action taken by the lender to reclaim the property. Foreclosure timelines vary depending on your state, and they can be judicial or non-judicial.
But there’s good news: if you act early, you can often avoid foreclosure altogether. The U.S. Department of Housing and Urban Development (HUD) offers helpful guidance through their Avoiding Foreclosure resource page, which outlines your rights and what to expect.
To understand how the process works and what your rights are, you can also read our article on the foreclosure process and your options.
To determine your eligibility for assistance, your servicer may ask for a complete loss mitigation application. This usually includes:
Double-check that all pages are included when you send documents, even if a page is blank. Missing a single document or date can delay the process.
Be sure to track what you’ve submitted and save copies of everything. Keep your paperwork organized by date, and use clear labels when submitting by mail or uploading online.
When you’re in financial distress, you’re vulnerable. Unfortunately, some bad actors take advantage of this. The HUD website warns against fraudulent foreclosure rescue offers. Be wary of anyone who:
Credit.org’s counseling services are always free and confidential.
Once you’ve spoken with your servicer and submitted the necessary documents:
If your application for assistance is denied, ask for the reason in writing and discuss other available options. You may still qualify for different programs.
Here are a few more tips to help you stay on track:
Staying organized, proactive, and respectful in your communication can make all the difference. Many homeowners who reach out early find a helpful solution, and sometimes even save their home.
You don’t have to go through this alone. HUD-approved housing counseling agencies can:
You can also refer to Fannie Mae’s tips for communicating effectively with your servicer.
Open, honest communication with your mortgage servicer can make all the difference. It’s not always easy to talk about money problems, but delaying the conversation puts your home at risk. Instead, face the situation head-on with the right tools, information, and support.
At Credit.org, we offer free foreclosure prevention counseling to help you understand your options, prepare the right documents, and communicate confidently with your servicer.
Don’t wait until it’s too late. Reach out today; we’re here to help you navigate this process and protect your financial future.
