Falling Behind on Your Mortgage? Here’s How to Stop Foreclosure.

Foreclosure activity is rising, and if you’re struggling to make payments, you aren’t alone. If you want to keep your home, you must act before the auction date. Here are the primary ways to work with your lender to stay in your house:

1. Forbearance (The “Pause Button”)

The lender allows you to pause or reduce payments for 3–4 months.

• The Catch: This is not a waiver. You must pay back the skipped amount later, often in a lump sum or added to your loan balance.

• Best For: People with a temporary setback (like a 2-month job gap) who have a guaranteed “influx of cash” coming soon to catch up.

2. Loan Modification (The “Reset Button”)

The lender changes your original loan terms (interest rate or length) to lower the monthly payment.

• The Catch: It’s hard to qualify. You’ll enter a 3-month trial period. If you are even one day late on a trial payment, the house immediately goes back into foreclosure. Roughly 50% of applicants are denied.

• Best For: People with a permanent change in income who are committed to staying in the home long-term.

3. Partial Claim (For FHA Loans Only)

The FHA provides an interest-free loan to pay off your overdue balance, creating a “second mortgage” you don’t pay back until you sell the house.

• The Catch: You lose equity in your home because you now owe more money.

• Best For: FHA borrowers who can afford their original payment again but just can’t pay the “back-due” mountain of debt.

When These Options Aren’t Enough

Most bank programs require you to have a “financial cushion” moving forward. If you are living paycheck-to-paycheck or have already been denied a modification, you need a Plan B.

The Direct Cash Plus Program If you cannot afford to keep the home but want to avoid the credit destruction of a foreclosure, we can help. At Unlocked Relief, we specialize in helping New England families find creative exits that save their credit and provide a fresh start.