Last reviewed: 2 October 2026
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Mortgage loss mitigation options, explained
If you cannot pay your mortgage, the CFPB says to call your servicer right away and to contact a HUD-approved housing counseling agency. This page reports what the CFPB’s pages say about the options a servicer might offer and who to contact. It is general information and not advice about your situation.
What this term means: the CFPB says “loss mitigation” refers to the ways your servicer can work with you to avoid foreclosure.[2] Your servicer is the company you send payments to; the number is on your monthly statement.[1]
Who the CFPB says to contact
| Contact | What the CFPB says |
|---|---|
| Your mortgage servicer | Find the number on your monthly mortgage statement, your coupon book from your lender, or your servicer’s website. The CFPB says to call as soon as you know you cannot make a payment.[1, 2] |
| A HUD-approved housing counseling agency | The CFPB says a counselor can discuss your situation and whether you qualify for programs, help you understand the loss mitigation options your servicer offers, guide you through working with your servicer, and help at little or no cost with budgeting, credit card debt or other money problems. Find one through the CFPB’s mortgage help page, by calling HUD at (800) 569-4287 (the CFPB says to give your ZIP code), or by calling the HOPE Hotline, 24 hours a day, seven days a week, at (888) 995-HOPE (4673).[1, 2, 3] |
| An attorney | The CFPB says that if you are facing imminent foreclosure or have been served with legal papers, you might also need to consult an attorney.[1] |
What the CFPB says to be ready to explain
When you call your servicer, the CFPB says to be prepared to explain why you are unable to make your payment, whether the problem is temporary or permanent, and details about your income, expenses and other assets such as cash in the bank. It says that servicemembers with permanent change of station (PCS) orders should mention them, because you could qualify for loss mitigation options because of your military move. It also says to fill out a mortgage assistance application if your servicer gives you one.[1]
The options the CFPB lists
The CFPB says the options a servicer might make available include the following. It says the servicer assesses your application, considers the options that could be available, and tells you what loss mitigation options, if any, it can offer you.[1]
- Refinance
- Loan modification
- Repayment plan
- Forbearance
- Short sale of your home
- Giving your home back to your lender through a “deed in lieu of foreclosure”
The CFPB pages we cite list these options by name and do not define each one, so this page does not define them either. The CFPB has separate pages, including “What is a repayment plan on a mortgage?” and “What is a mortgage loan modification?”, which we have not summarized here. Whether any option is available to you, and on what terms, is decided by your servicer; a HUD-approved counselor can explain what applies. The CFPB says a counselor can help you understand the loss mitigation options your servicer offers.[1] This page does not assess which option applies to anyone.
What the CFPB says about servicer duties and timing
- Your loan servicer must contact you, provide accurate information, and tell you about loss mitigation options you may be eligible for.[2]
- If you send a complete application to your servicer early enough, the servicer has to tell you the options you have to keep your home or to leave it.[2]
- Your servicer cannot make a first notice or filing for foreclosure until you are more than 120 days behind on your payments.[2]
- When you submit a complete application early enough, the servicer cannot start foreclosure while you are being evaluated or while you are following through on the requirements of a loan modification.[2]
- The CFPB says the earlier you complete the application, the more protections you get.[2]
For the rules and timelines in more detail, see our guide to loss mitigation application timelines and foreclosure referral rules. The CFPB does not say in these pages what “early enough” means in days; do not rely on this page for a deadline.
Foreclosure help scams: the CFPB’s warning signs
The CFPB says foreclosure scammers might tell you they will save your home when they are really taking your money, and lists these warning signs:[1, 2]
- You are asked to pay upfront for help.
- The company guarantees it will get the terms of your mortgage changed.
- The company guarantees you will not lose your home.
- You are asked to sign over title to your home or to sign other documents you do not understand.
- You are instructed to send your payment to someone other than your mortgage company or servicer.
- The company offers to do a “forensic audit.”
- You are told to stop paying your mortgage.
- The company says it is affiliated with the government, or uses a logo that looks like a government seal but is slightly different.
Our guide to the MARS Rule covers the federal advance-fee rule on loan modification marketing.
Complaints
The CFPB says submitting a complaint will not automatically stop or delay foreclosure, but it forwards the issue to the company to get an answer about what the company is doing or going to do about your case.[3] You can reach the CFPB at (855) 411-2372.[2] See how to file a complaint.
How to verify this yourself
Read the three CFPB pages in the reference list directly; they are the source for everything above and are updated by the CFPB over time. To find a counselor, use the HUD-linked tools on the CFPB mortgage help page, or see how to find a HUD-approved housing counselor.
What this page does not cover
This page is not legal or financial advice and does not tell you which option to pursue or whether you qualify for one. It does not cover program-specific rules for particular loan types, state foreclosure law, bankruptcy, or the detailed federal timelines. The CFPB’s own disclaimer says its pages give general consumer information and are not legal advice. Last reviewed 2 October 2026.