How to Prevent an Impending Foreclosure on Your Home

Sarah Brady, NFCC

Updated: August 4, 2026

Key Takeaways

Depending on your situation, you may have several options to prevent foreclosure.
If you haven’t already, contact your loan servicer to ask for workout options.
The sooner you contact your loan servicer, the more options you’ll have available.
Avoid working with companies that charge fees for foreclosure prevention.
A HUD-approved housing counselor can help you communicate with your loan servicer.

Did you know that home foreclosures are on the rise in the U.S.? If you’re one of the roughly 227,500 households facing foreclosure in 2026, you probably feel like there’s no solution. But many struggling homeowners don’t realize they may have multiple options for saving their homes.

If you’re behind on your mortgage payment and you want to prevent foreclosure, there are options you can pursue, but you’ll need to act fast. Instead of hiding from the problem, we recommend reaching out to your mortgage servicer or calling a HUD-certified housing counselor ASAP. When you do, you might be surprised at the solutions they offer you.

7 ways to prevent foreclosure and keep your home

The foreclosure process, which typically begins once you’re four months behind on your mortgage, is a scary thing to go through. If you don’t take action to stop the process, you can end up losing your home and seriously damaging your credit.

Instead of letting things spiral further out of control, reach out to your loan servicer, meaning the company that processes your loan payments, to find out which of the solutions below are available.

You can also reach out to a HUD-certified housing counselor for help understanding these options and communicating with your servicer.

Deferment

Deferment is a repayment option that adds your overdue mortgage payments to the end of your loan. It also brings your loan status back to “current.” Deferment is primarily available for people who are facing temporary hardships, but who can afford to catch up on payments once their hardship ends.

Repayment plan

With a repayment plan, you pay extra money for anywhere from two to 18 months in order to catch up on your overdue mortgage amount. These payments will be added to your monthly mortgage payment, which means this option isn’t affordable for some homeowners.

With a repayment plan, your lender or servicer might also consider your loan overdue until you catch up on the full amount you missed.

Forbearance

The forbearance option lets you reduce or put your mortgage payments on pause for a set number of months. However, you will either have to go on a repayment plan once your forbearance ends, or pay back the full amount at the end of your mortgage term. Your overdue amount may also accrue interest charges until it’s fully paid off.

Loan modification

With a loan modification, the terms of your loan change in order to make the mortgage more manageable. The new terms on your mortgage might include anything from a lower interest rate to a longer repayment term, or a reduction in the total amount you owe.

Mortgage refinancing

When you refinance, you take out a new mortgage and use it to pay off your existing debt. Refinancing can allow you to get into a more affordable loan by reducing your interest rate, lowering your monthly payment and/or spreading out your repayment over a longer period.

Just note that your credit scores will be used to determine if you qualify for a refinance loan. If you’ve recently missed payments on your mortgage, there’s a chance your credit will be in too poor a condition to qualify.

Filing bankruptcy

Filing bankruptcy can help you prevent foreclosure because it automatically pauses the foreclosure sale process. This pause can give you more time to find a solution and catch up on your payments.

However, it’s important to note that filing Chapter 7 bankruptcy will give you different options for preventing foreclosure than filing Chapter 13:

Chapter 7: You have to pay the overdue amount as soon as you file.
Chapter 13: You’ll have to pay back the overdue amount over 3 to 5 years, in addition to covering your mortgage payments. If you can’t afford to maintain the payments, filing Chapter 13 can at least give you some time to sell your home and avoid foreclosure.

Special protections for government-backed mortgages

If you have a government-backed loan, such as an FHA or VA mortgage, you may have special options to prevent foreclosure. For example, with FHA mortgages, your servicer is required to consider whether you qualify for FHA loss mitigation before beginning the foreclosure process.

With VA mortgages, the servicer has to attempt to find a foreclosure prevention option that can work for you, such as a repayment plan or loan modification.

2 ways to prevent foreclosure, even if you can’t keep your home

Even if you can’t afford to keep your home, there may still be a way for you to prevent a foreclosure. Here are some of the other options you may have.

Short sale

A short sale, also known as a pre-foreclosure sale, happens when you sell your property for less than the full amount you owe on your mortgage. If your lender gives you permission to complete a short sale, they may also forgive the “deficiency balance,” which is the difference between the sale price and what you owe.

In addition to potentially having the deficiency balance forgiven, one of the main benefits of conducting a short sale is that you won’t have a foreclosure reported on your credit reports.

Deed-in-lieu of foreclosure

A deed-in-lieu of foreclosure lets you voluntarily turn over your home to your lender in order to prevent foreclosure. Similar to a short sale, going this route can potentially help you avoid paying a deficiency balance and can reduce some of the damage done to your credit.

Should you pay a foreclosure prevention company?

HUD advises homeowners to avoid paying for foreclosure prevention, and save their money for the mortgage. If you’re contacted by a company that promises they can save your home from foreclosure, be cautious. Companies that guarantee specific results without knowing the details of your situation, or that ask you to pay upfront fees, are usually scammers.

How can a credit counselor help you prevent foreclosure?

If you’re facing foreclosure, the Department of Housing and Urban Development (HUD) recommends reaching out to a HUD-approved housing counselor. Fortunately, most NFCC-certified credit counseling agencies offer HUD-approved housing counseling.

Unlike for-profit foreclosure prevention companies, these counselors don’t charge you for their information and services. Here are some of the ways they can help you prevent a foreclosure on your home:

Review your finances and recommend workout options
Identify and connect you with your loan servicer
Negotiate with your servicer on your behalf
Help you prepare documents for your servicer
Refer you to legal assistance or support programs

If you decide to file bankruptcy, an NFCC-certified credit counselor can also provide you with the court-ordered bankruptcy counseling you’re required to complete before you file.

For anyone facing foreclosure, getting support from a certified counselor can lift a huge burden off your shoulders. So if you need help navigating your foreclosure prevention options, don’t hesitate to connect with one of our counselors today!