There are several steps that homeowners can take on their own to deal with a delinquent mortgage payment or an impending foreclosure. People do not always need to rely on the government, solutions offered by their lender or a housing counselor. There are things you can do own your own. However, please always keep in mind that mortgage counselors can often help you, and they offer free or no cost mortgage advice.
A 30-year fixed-rate mortgage is also called a conventional rate mortgage. The rate that you see when mortgage rates are advertised is typically a 30-year fixed rate. The loan lasts for 30 years and the interest rate is the same—or fixed—for the life of the loan.  The longer timeframe also results in a lower monthly payment compared to mortgages with 10- or 15-year terms.

The material provided on this website is for informational use only and is not intended for financial, tax or investment advice. Bank of America and/or its affiliates, and Khan Academy, assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional and tax advisor when making decisions regarding your financial situation.
Fixed rates and adjustable rates are the most common types of mortgages. Over 90% of US mortgages are fixed rate loans. A second mortgage works the same as a first mortgage, allowing a borrower to take out a lump sum of money and then make monthly payments to pay it back. You can use the second mortgage to make repairs on your house, to consolidate your bills, or to help with the down payment on the first mortgage to avoid needing to pay PMI.
Conforming loan. Fannie Mae and Freddie Mac are government-controlled corporations that purchase and sell mortgage-backed securities. Conforming loans meet their underwriting guidelines and fall within their maximum size limits. For a single-family home, the loan limit is currently $424,100 for homes in the contiguous states, the District of Columbia and Puerto Rico, or $636,150 for homes in Alaska, Guam, Hawaii and the U.S. Virgin Islands. However, in certain high-cost counties, loans limits can go as high as $954,225.
If you are thinking about buying a home in the near future, it’s a good idea to check your credit report and find out what your credit score is early on.  You are entitled to a free credit report once a year from each of the three credit bureaus – Equifax, TransUnion, and Experian, which you can access at www.annualcreditreport.com. Check for mistakes on your credit report. A mistake on your credit report can cost you when trying to secure a home loan. Mistakes do happen, so review your credit report closely to ensure everything is correct and dispute any errors you might find with the appropriate credit bureau.

In some cases, you may not be required to provide all of that information. Some loans are referred to as low doc or no doc because they don't require you to prove any of the statements that you make to your underwriter. These loans are normally more expensive, but can be easier to obtain. Additionally, you can obtain a preauthorization before you submit an offer on a home you would like to buy. That can speed up the process, and also shows the seller that you are serious about the purchase.
If you’re interested in refinancing to take advantage of lower mortgage rates, but are afraid you won’t qualify because your home value has decreased, you may want to ask if you qualify for the Home Affordable Refinance Program (HARP) or the HOPE for Homeowners (H4H) program. For more information, visit the U.S. Department of Housing and Urban Development.

A lot of borrowers choose to pick up the phone and call a handful of lenders to request interest rates. Those who do that may be surprised when the lender is asking questions before listing off rates. Again, interest rates vary and are dependent on many factors such as the loan program, your financial situation (including credit score), the cost of the home you’re looking to fund, etc. So, both the borrower and the lender should be interviewing one another to narrow down best options. Don't be alarmed if this happens to you! It's all part of the process of getting you into the best loan for your financial situation.
The material provided on this website is for informational use only and is not intended for financial, tax or investment advice. Bank of America and/or its affiliates, and Khan Academy, assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional and tax advisor when making decisions regarding your financial situation.

Selling Your House: Your servicers might postpone foreclosure proceedings if you have a pending sales contract or if you put your home on the market. This approach works if proceeds from the sale can pay off the entire loan balance plus the expenses connected to selling the home (for example, real estate agent fees). Such a sale would allow you to avoid late and legal fees and damage to your credit rating, and protect your equity in the property.


The possibility of losing your home because you can’t make the mortgage payments can be terrifying. Perhaps you’re having trouble making ends meet because you or a family member lost a job, or you’re having other financial problems. Or maybe you’re one of the many consumers who took out a mortgage that had a fixed rate for the first two or three years and then had an adjustable rate – and you want to know what your payments will be and whether you’ll be able to make them.
Start by requesting the free annual credit report you’re entitled to at AnnualCreditReport.com. “For each credit account you have, the report shows creditors’ names, the amount owed, the highest balance owed, available credit, whether the account is open or closed (and who closed it), the number of times a payment was past due, and whether the account is in default,” Freddie Huynh, a lead data scientist at FICO (Fair Isaac) for 18 years who is now Vice President of Credit Risk Analytics at Freedom Financial Network, explains.

Home Affordable Modification Program (HAMP): HAMP lowers your monthly mortgage payment to 31 percent of your verified monthly gross (pre-tax) income to make your payments more affordable. The typical HAMP modification results in a 40 percent drop in a monthly mortgage payment. Eighteen percent of HAMP homeowners reduce their payments by $1,000 or more.
There are thousands of non-profit housing counseling agencies that are certified by the U.S. Department of Housing and Urban Development (HUD). Counselors will work with homeowners to help them prevent a foreclosure or get back on track with paying their mortgage. Most of the services are free for struggling homeowners. Get more details on HUD housing counseling agencies.
A deed in lieu of foreclosure is when a homeowner gives the lender back the convey and deeds the home back to the bank or lender that currently holds the mortgage. This has several advantages for both the lender and the borrower, including less of an impact to credit scores, and it releases the homeowner from the debt they owe. Continue with deed in lieu of foreclosure.
Requirements for getting a mortgage loan often change, and if you are considering applying for a home loan in the near future, be ready to cough up the cash. Walking into a lender’s office with zero cash is a quick way to get your home loan application rejected. Mortgage lenders are cautious: Whereas they once approved zero-down mortgage loans, they now require a down payment.
Regions Bank has helped thousands of homeowners avoid foreclosure through a program called the Customer Assistance Program. This can provide a number of solutions to qualified applicants. Sign up for forbearance, repayment plans, and home loan modifications are all offered. There are several Regions Bank foreclosure assistance programs for struggling low income customers.
×