How to Avoid Foreclosure: What Homeowners Can Do Before It Starts
The best time to avoid foreclosure is before it starts. If you have missed a payment or expect to, the steps you take in the first weeks can change which options you have later.
Why acting early matters
Lenders and servicers generally have more options available before a foreclosure is filed or a sale is scheduled. Federal servicing rules generally keep a servicer from starting foreclosure until a loan is more than 120 days delinquent, which gives you time to apply for help.
Steps to avoid foreclosure
Contact your servicer now. Ask in writing what loss mitigation options are available, and keep copies of everything.
Explain your hardship. Job loss, illness, divorce, or higher costs are common reasons. Prepare a short, accurate hardship letter.
Ask about a loan modification. A loan modification changes loan terms, such as the rate, term, or how past-due amounts are handled, to make payments affordable.
Consider other relief. Forbearance pauses or reduces payments for a time. A repayment plan spreads past-due amounts over future payments.
Send a complete application. Include every document the servicer requests, and confirm in writing that it is complete.
Know your alternatives. A short sale or deed in lieu of foreclosure can end the loan without an auction on some loans. See our foreclosure alternatives.
Talk to an attorney early. A foreclosure defense attorney can review your notices, check the servicer's process, and explain options in your state.
Foreclosure alternatives compared
Loan modification: changes loan terms to lower the payment. You keep the home.
Forbearance: pauses or reduces payments for a set time. You keep the home.
Repayment plan: adds past-due amounts to future payments. You keep the home.
Short sale: sells the home for less than owed, with lender approval. You do not keep the home.
Deed in lieu of foreclosure: transfers the home to the lender to end the loan. You do not keep the home.
Availability depends on your loan type and servicer.
Mistakes that make foreclosure more likely
Ignoring letters, calls, or court papers.
Paying a company up front for a promise to stop foreclosure.
Sending an incomplete application, or missing a deadline for documents.
Waiting until the sale date is days away.
Frequently asked questions
How many missed payments before foreclosure starts? It varies by loan and state, but federal rules generally require more than 120 days of delinquency before a servicer begins foreclosure.
Does applying for a modification guarantee I keep my home? No. Approval depends on your finances and the loan's rules.
Can an attorney help before a notice arrives? Yes. Early advice often means more options.
Related guide: How to stop a foreclosure sale date
Talk to Summit Real Estate Law Firm
If you are behind on your mortgage, call (866) 259-8777 for a consultation, or book online.
This article is general information, not legal advice, and does not create an attorney-client relationship. Results depend on your facts and state law.
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