How foreclosure typically progresses
After missed payments, the servicer issues notices and may file a Notice of Default. Depending on state law, the process is judicial (court-supervised) or non-judicial. Auction or repossession follows if the default is not cured. Timelines vary widely by state.
Loan modification
A change to the loan's rate, term, or principal balance designed to bring the payment into reach. Modifications are approved at the lender/servicer's discretion under program guidelines.
Forbearance
A temporary pause or reduction in payments. Forbearance plans must be requested before missed payments accumulate and have to be repaid (lump sum, repayment plan, or deferred to the end of the loan, depending on agreement).
Short sale and deed-in-lieu
A short sale lets you sell the home for less than the loan balance with lender approval. A deed-in-lieu transfers the property back to the lender to satisfy the debt. Both have credit and tax implications and should be discussed with qualified counsel.
Why act early
Options shrink as missed payments accumulate. Talking to the servicer and a HUD-approved housing counselor early dramatically expands the alternatives.