ABA Family Legal Guide

Home Ownership

The Financial Side of Home Ownership

Understanding Your Mortgage

Is there anything I can do if I can't pay my mortgage?

When people get behind on their mortgage payments, it's usually because of job loss, divorce, illness, or medical bills. The first thing to do if you're having trouble making your mortgage payments is to take the matter seriously. Many people refuse to face the fact that their home is on the line and delay doing anything until it's too late.

Lenders don't like to foreclose on property because they may not retrieve the full amount of their loan. In most cases, the homeowners would sell and repay the mortgage if they could. Typically, the bank ends up with a property that's not worth the outstanding amount on the mortgage. A lender will recover all its money only if it is foreclosing on a home that has much more equity than what's owed on the mortgage. There may be ways to work with the lender to reduce your monthly payments or at least delay foreclosure until you can sell your house.