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The Homeowner Hardship Playbook
Eight steps for homeowners who are behind on a mortgage, in the order that tends to work. Print it or save it as a PDF.
Step 1. Open your mail and call your servicer
Read every notice, even the ones you dread. Then call the number on your mortgage statement and ask for the loss mitigation department. Write down the date, the name of the person and any reference number. Ask for the application and the list of documents it requires.
Step 2. Know your numbers
Work out how much is past due: the missed payments plus any fees. The catch-up calculator shows the total and what a repayment plan would add to each payment. Ask your servicer for a reinstatement quote with a good-through date.
Step 3. Know your dates
If you have a notice of default or a notice of sale, write down the dates on it. The Texas foreclosure calendar shows the earliest sale date the statute allows. Put the dates on a calendar and work backward.
Step 4. Choose what to ask about
A short-term hardship usually points to a forbearance or repayment plan. A lasting drop in income usually points to a loan modification. If you want to move on, a sale may fit. The options quiz lists the choices to raise.
Step 5. Build your package
Servicers review a request when it is complete. Gather the papers on the checklist, build a monthly budget with the worksheet, check your ratios with the modification check, and write a hardship letter.
Step 6. Get a counselor on your side
A HUD-approved housing counselor can review your budget and your options, often for free. Search at hud.gov/findacounselor.
Step 7. Protect yourself from scams
Do not pay anyone an upfront fee to save your home. Do not stop talking to your servicer because someone told you to. Do not sign a deed or transfer title before an attorney has reviewed it.
Step 8. If selling is the right call
A sale before a foreclosure sale date can pay off the loan and protect your equity. Get a payoff statement from your servicer, a price opinion from an agent, and compare a listing with a cash sale on what you keep. The calculator does the comparison.
Quick reference
| Option | What it means |
|---|---|
| Forbearance | Payments are lowered or paused for a set time. |
| Repayment plan | You catch up by adding part of the past-due amount to each payment. |
| Loan modification | The loan terms change so the payment is lower. |
| Reinstatement | You pay the full past-due amount and the loan is current. |
| Short sale | The home sells for less than owed, with the servicer's approval. |
| Deed in lieu | You hand the property to the lender instead of going through foreclosure. |
General information, not legal, tax or financial advice. Captain Saves A Home is a Houston home buyer, not a law firm, lender or government agency. We buy houses, so we have an interest in a sale; the tools are free to use whether or not you ever contact us.
Common questions
Is the playbook legal advice?
No. It is general information. A HUD-approved housing counselor or a Texas attorney can advise you on your situation.
Can I print it?
Yes. Use the print button, then choose Save as PDF in your browser's print window.