Help With Mortgage 2026 — What to Do If You're Struggling to Make Payments
Do NOT ignore missed payments. The single most damaging thing you can do is avoid the problem. The earlier you contact your mortgage servicer, the more options you have. Once you are 90+ days behind, options become significantly more limited and foreclosure proceedings can begin. Call your servicer today — not next week.
2026 — Why So Many Americans Are Struggling
Why 2026 is especially hard: Mortgage rates stuck at 6.5%+. Home prices still high — national median $429,300 (May 2026, NAR). Inflation hit 4.2% in May — highest since 2023. Job cuts rising — May 2026 job cuts up 16% from April, highest May total since 2020. Property taxes and homeowner's insurance continuing to rise. All of these together are squeezing homeowners who were already stretched thin.
Your Options — Complete Guide
Options are listed in order of priority — start with Option 1 before considering others.
1Call Your Mortgage Servicer — Do This First
Free
Do This Today
Your mortgage servicer is the company you send payments to every month. They have options available that most homeowners never ask about. Calling early — before you miss a payment — gives you access to the most options. Once you fall behind, options narrow.
| What to say | "I am experiencing financial hardship and I need to discuss my options before I miss a payment." |
| What they can offer | Forbearance, repayment plans, loan modification, short sale guidance |
| What to have ready | Loan number, monthly income, monthly expenses, description of hardship (job loss, medical bills, divorce, etc.) |
| Find your servicer | Check your monthly mortgage statement or look up your loan at mers-servicerid.org |
2Forbearance — Pause or Reduce Payments
Free to Request
Forbearance allows you to temporarily pause or reduce your mortgage payments for a set period while you recover from a hardship. You still owe the full amount — forbearance does not forgive debt — but it stops foreclosure proceedings while you get back on your feet.
| How long | Typically starts with 3 months. Can be extended up to 12 months total with servicer approval. |
| Does interest accrue? | Yes — interest continues to accrue during forbearance on most loans. The paused payments must be repaid. |
| Repayment options | Lump sum at end (rare), repayment plan over time, loan modification, or deferral to end of loan |
| Credit score impact | Varies by servicer and agreement — ask specifically about credit reporting before agreeing |
| Disaster forbearance | Special extended forbearance available if your home was damaged in a federally declared disaster (LA fires 2025, etc.) |
| How to request | Call your servicer directly — or submit online through your servicer's website |
3Loan Modification — Permanently Change Your Loan Terms
Free to Apply
A loan modification permanently changes the terms of your existing mortgage to make payments more affordable. Unlike forbearance (which is temporary), a modification is a permanent change — it can lower your interest rate, extend your loan term, or reduce the principal balance in some cases.
| What can change | Interest rate reduction, loan term extension (e.g., 30 years → 40 years), principal deferral or forgiveness in some programs |
| Who qualifies | Borrowers experiencing a documented permanent or long-term hardship. Typically requires proof of income and hardship. |
| Fannie/Freddie loans | Flex Modification program available — can reduce monthly payment by up to 20% |
| FHA loans | FHA-HAMP (Home Affordable Modification Program) available through servicer |
| VA loans | VA-specific modification available — contact VA loan technicians at VA.gov |
| Credit impact | May be reported as "modified" — less damaging than foreclosure but affects credit |
| How to apply | Contact your servicer and request a loan modification. Submit hardship letter and financial documents. |
4Homeowner Assistance Fund (HAF) — Free Money That Doesn't Need to Be Repaid
Free — No Repayment
Ends September 30, 2026
The federal Homeowner Assistance Fund provides grants to homeowners experiencing financial hardship related to COVID-19. It covers mortgage payments, arrears, property taxes, homeowner's insurance, and utilities. It does NOT need to be repaid. Some states still have funds available — but the program ends September 30, 2026.
| What it covers | Mortgage payments, past-due amounts, property taxes, homeowner's insurance, HOA fees, utilities |
| Does it need to be repaid? | No — it is a grant |
| Program end date | September 30, 2026 — or when your state's funds are exhausted, whichever comes first |
| Income requirement | Generally at or below 150% area median income ($79,900+ minimum threshold) |
| Hardship requirement | Must have experienced COVID-19-related financial hardship |
| Status by state | Some states funds exhausted. Others still open. Verify immediately. |
| How to apply | CFPB HAF Program Finder — find your state's program |
5VA Partial Claim Program — NEW for Veterans (June 15, 2026)
Veterans Only
Launches June 15, 2026
The VA is launching a new Partial Claim program on June 15, 2026 — specifically for veterans experiencing financial hardship. This program allows the VA to pay the servicer the amount needed to bring a VA loan current on missed payments. The veteran then repays the partial claim when the loan is paid off or the home is sold — not immediately.
| What it does | VA pays servicer the missed payment amount to bring loan current — stops foreclosure |
| Launch date | June 15, 2026 |
| Repayment | Repay to VA when loan paid off or home sold — not immediate |
| Requirement | Must have been able to pay mortgage on time for 3 straight months before hardship |
| Servicer deadline | Servicers have until November 28, 2026 to implement — contact VA directly if servicer is unaware |
| Who to contact | VA.gov — Avoid Foreclosure or call VA loan technicians directly |
6Free HUD-Approved Housing Counseling
100% Free
HUD-approved housing counselors provide free, unbiased advice to homeowners struggling with mortgage payments. They can review all your options, help you communicate with your servicer, and identify programs you may not know about — including state-specific assistance. This service is always free — never pay for mortgage counseling.
| Cost | Free — funded by HUD. Never pay for this service. |
| What they do | Review your full financial situation, identify all available options, help you communicate with servicer, assist with HAF and other program applications |
| Languages | Available in multiple languages — ask when you call |
| How to find one | HUD.gov — Find a Housing Counselor |
| HOPE Hotline | 1-888-995-HOPE (1-888-995-4673) — free 24/7 mortgage assistance hotline |
7Refinancing — If You Have Equity and Good Credit
If you are current on payments but struggling with high monthly costs, refinancing to a lower rate can reduce your monthly payment. However, in June 2026's rate environment (6.5% average), refinancing only makes sense if your current rate is significantly higher — or if you can access a VA loan at 5.75%.
| Current 30-yr rate | 6.55% (Bankrate, June 10, 2026) |
| VA refinance rate | 5.75% — best available for eligible veterans |
| When it makes sense | Your current rate is above 7.0%+ · You can qualify for a VA IRRRL (veterans only) · Your credit score has improved significantly since original loan |
| VA IRRRL | VA Interest Rate Reduction Refinance Loan — streamlined refinance for existing VA loan holders. Minimal documentation, no appraisal required in most cases. |
| Breakeven rule | Divide closing costs by monthly savings to find breakeven point. If you plan to stay longer than the breakeven period, refinancing may make sense. |
8State and Local Mortgage Assistance Programs
Many states and cities have their own mortgage assistance programs beyond federal options. California expanded its mortgage relief program in February 2026 to cover up to 12 months of payments (up to $100,000) for disaster survivors — a fourfold increase from the previous 3-month limit.
| California | Expanded mortgage relief — up to 12 months / $100,000 for LA firestorm survivors. Income limits expanded. Source: Governor Newsom, February 2026. |
| Find your state | Search "[Your State] mortgage assistance 2026" + contact your state housing finance agency |
| 211.org | Call 211 or visit 211.org — local resource directory connects to state and local assistance programs |
The One Thing You Must Never Do
Never pay a third party to "save your home" or "negotiate with your lender." Mortgage rescue scams are at their highest levels in years — targeting desperate homeowners with promises of loan modifications or foreclosure prevention for upfront fees of $1,000–$5,000. These are almost always scams. Everything these companies offer, you can do yourself for free — or with a free HUD-approved counselor. If someone contacts you unsolicited offering to "save your home," hang up.
What to Do Right Now — Step by Step
Quick Reference — Which Option for Which Situation
| Your Situation | Best First Option | Where to Start |
|---|---|---|
| Just lost job — haven't missed payment yet | Forbearance request immediately | Call servicer today |
| Already 1–2 months behind | Servicer + free HUD counselor simultaneously | Call servicer + 1-888-995-4673 |
| COVID-related hardship, any delinquency | HAF application first (free grant, ends Sept 2026) | consumerfinance.gov HAF finder |
| Veteran with VA loan, behind on payments | VA Partial Claim (launched June 15, 2026) | VA.gov or call VA loan technicians |
| Permanent income reduction | Loan modification request | Call servicer, ask for modification |
| Current but payments feel too high | Refinance analysis + servicer review | Compare rates at Bankrate.com |
| Not sure what to do | Free HUD housing counselor | 1-888-995-4673 (free, 24/7) |
| California LA fire survivor | CA expanded relief — up to $100,000 | California HAF / Governor's office program |
Official Resources — All Free
Frequently Asked Questions
Bottom Line: If you are struggling with mortgage payments in 2026, you have real options — but time matters. Call your servicer before missing a payment. Check HAF eligibility immediately (free grant, ends September 2026). Veterans: contact VA.gov for the new Partial Claim program launching June 15. Call the free HOPE Hotline (1-888-995-4673) at any time. The worst thing you can do is nothing — and the best thing is to make one phone call today.
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