Start with the free options
Before you sell to anyone, call the servicer and a counselor.
If you are behind, some of the most useful options cost nothing and do not involve selling the house. A responsible buyer will tell you to exhaust those first, because the ones that do not are the ones to be careful with.
The timeline, roughly
Under the CFPB’s mortgage servicing rules, a servicer generally may not make the first notice or filing required for a judicial or non-judicial foreclosure until the borrower’s loan is more than 120 days delinquent. The CFPB explains the practical shape of this in its foreclosure timeline explainer, and the rule itself sits at § 1024.41.
There are exceptions, state timelines differ substantially, and a non-judicial foreclosure state can move faster after that point than most sellers expect. Treat 120 days as a window to act in, not as a guarantee of how much time you have.
Ask for these by name
| Option | What it does | Best when |
|---|---|---|
| Reinstatement | Pay the total past due amount in one sum and return the loan to current. | A lump sum is available — a tax refund, a sale of something, family help. |
| Repayment plan | Spread the arrears across several months on top of the regular payment. | The hardship has ended and income now supports a slightly higher payment. |
| Forbearance | Temporarily reduce or pause payments, with the arrears handled afterward. | A short, defined interruption — illness, job loss with a return in sight. |
| Modification | Change the loan terms to produce a payment the borrower can sustain. | Income dropped permanently but the household intends to stay. |
| Partial claim or deferral | Move arrears to the back of the loan, depending on loan type and program. | Government-backed loans where the program allows it. |
| Short sale or deed in lieu | Exit the property with lender cooperation when the debt exceeds value. | Staying is not the goal and there is no equity to protect. |
Write down who you spoke to, when, and what they said. Ask for reference numbers. Servicer files change hands, and your notes are sometimes the only continuous record.
Free help that is not selling you anything
HUD-approved housing counseling agencies provide free counseling to homeowners. They are not buyers, not lenders, and not compensated by the outcome of your decision. Find one through the CFPB’s counselor directory or HUD.
Nobody should charge you an advance fee to negotiate with your mortgage company. Federal rules on mortgage assistance relief services at 12 C.F.R. Part 1015 restrict when such fees may be collected. If someone wants money up front to “save your home,” stop and call a HUD-approved counselor instead.
Where selling fits
Selling is one option among several, and it is the right one less often than people in this industry like to admit. It becomes worth considering when the hardship is permanent, when the payment does not fit the household under any modification the servicer will offer, or when the property itself is the problem — condition, distance, a rental that stopped working.
If you do sell, the arrears do not disappear. They get paid at closing out of proceeds, they get reinstated by a buyer as part of the deal, or they are negotiated with the lender in a short sale. Any offer that does not clearly state which of those is happening is incomplete. If there is little or no equity, the choices narrow further.
Common questions
How far behind can I get before foreclosure starts?
Federal servicing rules generally prohibit the first foreclosure notice or filing until the loan is more than 120 days delinquent, with exceptions. State timelines after that point vary widely, so confirm your own situation with the servicer and a counselor.
Will submitting a form on this site stop a foreclosure?
No. A request for a property review does not stop, extend, or affect any deadline. Keep communicating with your servicer and seek independent legal or HUD-approved housing-counseling help immediately if a sale date is set.
Should I pay someone to negotiate with my lender?
HUD-approved housing counseling is free. Federal rules restrict advance fees for mortgage assistance relief services. An upfront fee request is a reason to stop and get independent advice.
Can I sell a house that is in foreclosure?
Often yes, up to a point set by state procedure and the sale date, provided the payoff or a negotiated arrangement satisfies the lender at closing. Timing is tight, so tell any buyer the exact deadline at the first conversation.
General information, not advice. This page describes how these transactions commonly work. It is not legal, tax, or financial advice for your property, and it does not create any obligation on a lender. Review your own loan documents and the proposed agreement with independent professionals before signing.
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