How to Talk to Your Home Lender

If your mortgage is delinquent, or if you fear it may be in the near future, the most important thing to do is to take action and contact your lender.

Many lenders engage in responsible loss mitigation practices. For example, if you have the amount of money required to bring your loan current, the mortgage company will reinstate your mortgage. You may also contact your mortgage company and work out a repayment plan. Some other alternatives to foreclosure include a partial claim, straight modification, a permanent hardship, and a deed in lieu of foreclosure. 

If you are facing foreclosure, seek help from a Department of Housing and Urban Development (HUD) approved counseling agency, such as Money Management International (MMI). MMI offers help for homeowners and have housing counselors who are trained on loss mitigation techniques and can help you navigate all of your options. Be sure to check out HUD's study on the positive impact of housing counseling. Following are some tips when working with your lender to prevent foreclosure.

Stay in touch

It is better to contact your lender before they have to contact you. Help the lender understand you are serious about keeping your home by responding to their calls and letters. 

Be realistic

Do not make promises you cannot keep. It is better to admit you cannot pay what they are asking and come to a realistic agreement.

Be responsible

Your lender is focused on helping serious, responsible people who have the commitment and resources to avoid foreclosure. Make sure they understand that you are one of those people they should work with.

For more tips about how to avoid foreclosure, visit HUD.gov.

  • The Consumer Federation of America (CFA) is an association of nonprofit consumer organizations that was established in 1968 to advance the consumer interest through research, advocacy, and education. Today, nearly 300 of these groups participate in the federation and govern it through their representatives on the organization's Board of Directors.
  • The National Council of Higher Education Resources (NCHER) is the nation’s oldest and largest higher education finance trade association. NCHER’s membership includes state, nonprofit, and for-profit higher education service organizations, including lenders, servicers, guaranty agencies, collection agencies, financial literacy providers, and schools, interested and involved in increasing college access and success. It assists its members in shaping policies governing federal and private student loan and state grant programs on behalf of students, parents, borrowers, and families.

  • Since 2007, the Homeownership Preservation Foundation (HPF) has served as a trusted, neutral source of information for more than eight million homeowners. They are partnered with, and endorsed by, numerous major government agencies, including the U.S. Department of Housing and Urban Development and the Department of the Treasury.

  • The mission of the U.S. Department of Housing and Urban Development (HUD) is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD works to strengthen the housing market in order to bolster the economy and protect consumers; meet the need for quality affordable rental homes; utilize housing as a platform for improving quality of life; and build inclusive and sustainable communities free from discrimination.

  • The Council on Accreditation (COA) is an international, independent, nonprofit, human service accrediting organization. Their mission is to partner with human service organizations worldwide to improve service delivery outcomes by developing, applying, and promoting accreditation standards.

  • The National Foundation for Credit Counseling® (NFCC®), founded in 1951, is the nation’s largest and longest-serving nonprofit financial counseling organization. The NFCC’s mission is to promote the national agenda for financially responsible behavior, and build capacity for its members to deliver the highest-quality financial education and counseling services.