If your mortgage payment is slipping out of reach, a HUD-approved housing counselor offers free, independent help. Here is how the process works, from the first phone call to working with your servicer.
If your mortgage payment has become hard to make, or you can see trouble coming, you do not have to work things out with your lender alone. Housing counselors approved by the U.S. Department of Housing and Urban Development (HUD) offer free, independent help with foreclosure prevention, and the process is less mysterious than most homeowners expect. This starter guide explains what a counselor does, what a first session looks like and how to tell real help from a scam.
What a HUD-Approved Housing Counselor Does
A housing counselor is a trained advisor working at an agency HUD has approved. HUD certifies the counselors and approves the agencies in its network, and the advice is independent, meaning the counselor is not paid a commission to steer you toward any loan or company. HUD describes the program’s mission in plain terms: helping families obtain, sustain and retain their homes.
For a homeowner worried about foreclosure, a counselor can:
- Review your budget and overall finances to see where you stand
- Explain your options in plain language, from repayment plans to selling the home
- Help you understand and complete the paperwork your mortgage servicer requires
- Contact your lender or servicer on your behalf if calls with them have gone nowhere
- Build an action plan tailored to your situation
The network covers more than foreclosure. HUD-approved agencies also offer pre-purchase counseling, rental and eviction help, credit and budgeting workshops, reverse mortgage counseling, fair housing education and disaster assistance. Not every agency offers every service, so check the list of services for any agency you are considering.
Worth knowing
To find a counselor, use HUD’s online counseling search tool, the Consumer Financial Protection Bureau’s search tool, or call (800) 569-4287 (202-708-1455 TTY). A live operator can help, and you can ask for services in a language other than English.
Why the Counseling Is Free
HUD is direct about cost: foreclosure, eviction and homeless counseling are always free. Some agencies charge a nominal, reasonable fee for other types of counseling or workshops, so ask about charges before you sign up for anything. Help with avoiding foreclosure should not cost you anything, whether it comes from a counselor or your servicer.
Extra programs exist in many states. State housing finance agencies fund free foreclosure counseling and mediation through networks of local agencies, and some connect homeowners to free legal assistance once a foreclosure case has started. Rules vary by state, so ask a counselor what applies where you live. A federal program called the Homeowner Assistance Fund also provides money to states, tribes and territories to help homeowners with housing-related costs, such as paying down arrearages so a modification with a lower payment becomes possible. Counselors can help you work through the application if your state, tribe or territory runs such a program, since each designs its own rules.
Your First Session: What Happens and What to Bring
The first meeting is mostly a conversation about your situation. Expect the counselor to ask why you are having trouble making payments, what you have done so far to resolve the problem, and for details about your income, spending and other obligations. From there, the counselor will typically review your budget, suggest possible actions, and help you apply for any assistance you might qualify for.
You do not need perfect paperwork to start, but bringing the basics speeds things up:
- Your most recent mortgage statement, with your servicer’s contact information
- Records of income, such as recent pay stubs or benefit letters
- A list of monthly expenses and other debts
- Any letters from your lender or servicer, including notices about missed payments
Many agencies offer secure online or telephone counseling as well as in-person meetings, so you can choose the format that works for you. A budget review may touch on the full contents of your monthly payment, including the share that covers taxes and insurance; our explainer on what a mortgage escrow account is can help you prepare for that part.
How a Counselor Works With Your Servicer
If talking to your mortgage servicer feels intimidating, or the conversations have stalled, a counselor can step in. HUD notes that organizations can contact lenders and servicers on a homeowner’s behalf, and counselors act as advocates: they help with budgeting, create an action plan, and work on negotiating with the lender to try to save the home. They also know how to assemble and submit a complete mortgage assistance application, which is often where homeowners get stuck.
Timing matters. HUD describes how the sequence typically unfolds after payments stop: after the first missed payment, the lender contacts you by letter or phone; by the second missed month, it is likely calling to discuss the problem; and after a third missed payment, you may receive a demand letter, also called a notice to accelerate, giving you 30 days to bring the loan current. The CFPB adds two protections worth knowing. Your servicer generally cannot make the first notice or filing for foreclosure until you are more than 120 days behind. And if you submit a complete application for help early enough, the servicer generally cannot start foreclosure while your application is being evaluated or while you are meeting the requirements of a loan modification.
The options a counselor might walk through include a refinance, a loan modification, forbearance (payments paused or reduced for a limited time, with the skipped amounts repaid later, not forgiven), selling the home if it is worth more than you owe, or a short sale if it is not. If a job loss is the root of the problem, our guide to pausing mortgage payments after losing a job covers forbearance in more detail.
Warning Signs of Foreclosure Rescue Scams
Scam artists target homeowners in trouble, charging large amounts, sometimes thousands of dollars, for false promises of help. The CFPB flags these warning signs:
- The company guarantees it will get your mortgage terms changed
- You are asked to sign over the title to your home
- You are told to stop contacting your servicer or to send payments to the company instead
- Large upfront fees are demanded before any work is done
Compare that with legitimate counseling: foreclosure help from a HUD-approved agency is free, and your servicer’s own loss mitigation options cost nothing to apply for. If someone asks you for money to avoid foreclosure, treat it as a possible scam and get free assistance from a counselor instead. Fraudsters also pitch phony mortgage relief, counseling services or loan forgiveness, so verify any agency through HUD’s or the CFPB’s search tools before sharing documents.
Counseling for Buyers: The Same Network, Different Goal
The counselor you call during a hardship and the counselor a future buyer works with come from the same HUD-approved network. Pre-purchase counseling and homebuyer education workshops help people understand affordability, down payments and loan choices before they commit. Counselors can offer independent advice on whether a particular set of mortgage terms fits your objectives and circumstances, often at little or no cost. If you are early in the process, pairing that counseling with our walkthrough of getting pre-approved for a mortgage gives you a realistic picture before you shop.
Related guides
- A Timeline for Falling Behind on Your Mortgage: what happens month by month once payments stop, so you know what each notice means
- Can I Pause My Mortgage Payments If I Lose My Job?: how forbearance works and what the skipped payments cost you later
- When Refinancing Your Mortgage Makes Sense: one of the options a counselor may discuss if your hardship is long term
If you take one step after reading this, make it a phone call: dial (800) 569-4287 or search HUD’s counseling tool for an approved agency near you. The earlier you reach out, the more options you will have.
The short version
- Foreclosure, eviction and homeless counseling from HUD-approved agencies are always free; some other services may carry a small fee.
- A counselor can review your budget, explain options like forbearance and modification, and contact your servicer on your behalf.
- Your servicer generally cannot start a foreclosure until you are more than 120 days behind on payments.
- Never pay upfront fees for foreclosure help or sign over your home’s title; these are classic rescue-scam warning signs.
- Call (800) 569-4287 or search HUD’s or the CFPB’s tools to find an approved counselor near you.
Readers also ask
How much does a HUD-approved housing counselor cost?
Foreclosure, eviction and homeless counseling are always free at HUD-approved agencies. Some other counseling types and workshops may carry a nominal, reasonable fee, so ask before signing up.
Do I have to be behind on payments to get help?
No. HUD encourages homeowners to contact a counselor even if they have not missed a payment but see trouble coming, such as a payment increase, job loss, divorce or medical bills.
Can a counselor talk to my mortgage servicer for me?
Yes. HUD notes that organizations can contact lenders and servicers on your behalf, and counselors can help you complete and submit a mortgage assistance application.
Can I meet a counselor by phone or online?
Many HUD-approved agencies offer secure online and telephone counseling, and some states provide counseling remotely. Check each agency’s listed services before choosing one.
This guide is general information about U.S. mortgages, not financial, tax or legal advice. Loan terms depend on the lender and on your credit, income and property, so confirm the details with your lender, and see consumerfinance.gov for official guidance.
