Behind on Your Mortgage? Here’s What to Do Next

If your mortgage payment has started to feel harder to keep up with, you’re not alone. A change in income, rising expenses, or an unexpected situation can shift things quickly, even if you were on track before. 

What matters now is what you do next. 

At Veteran Saves, we talk a lot about building savings, but saving isn’t only about setting money aside. It’s also about protecting what you’ve already worked hard to build such as your home 

If you’re behind or think you might fall behind soon, time matters. Waiting often leads to added fees, missed notices, and fewer solutions. Even if you’re not sure what to say, taking the first step puts you back in control. 

Step 1: Contact Your Loan Servicer 

Your loan servicer is the company you send your mortgage payments to. Their job is to help manage your loan, including working with you if you’re having trouble. 

You don’t need to have everything figured out before you call. 

When you reach out: 

• Let them know what’s changed (income, expenses, unexpected situation) 

• Be honest about what you can and can’t afford right now 

• Ask what the next steps are 

If you’re not sure what to say, keep it simple: 

“I’m having trouble keeping up with my mortgage and want to understand my options.” 

Step 2: Understand the Options Available to You 

Once you’ve made contact, your servicer may walk you through different ways to help you stay in your home. 

Here are a few common options your servicer may discuss 

Forbearance: A temporary pause or reduction in payments to give you time to stabilize. 

Repayment Plan: Let's you catch up on missed payments over time instead of all at once. 

Partial Claim (for VA loans): Moves what you owe to the end of your loan so you can resume your regular payment. 

Not every option will apply to your situation, and some may change your monthly payment. Ask questions and make sure you understand how each option works before agreeing to anything. 

Step 3: Choose a Plan You Can Actually Afford 

Before you agree to anything, take a step back and look at your full financial picture. 

Ask yourself: 

• What can I realistically afford each month right now? 

• Is my income stable, or could it change again soon? 

• Will this plan still work for me in a few months? 

This is where your Spending and Savings plan matters. Even a simple breakdown of your income and expenses can help you avoid agreeing to something that puts you right back in the same position. 

If Keeping Your Home Isn’t Possible 

In some situations, keeping your home may not be the best or most realistic option. If that’s where you are, it’s still important to take action early to reduce financial impact and plan your next steps. 

If you have a VA-backed loan, the U.S. Department of Veterans Affairs can help you understand what options may be available based on your situation. 

This can include: 

• Guidance on working with your loan servicer 

• Information on possible alternatives to foreclosure 

• Support in understanding your next steps if you need to move on from the home 

You may also be able to connect with a VA housing counselor who can walk you through your options and help you make a plan. 

If you do need to leave your home, taking steps early can help you avoid additional costs, protect your credit as much as possible, and give you more control over what happens next. 

Additional Support and Resources 

If you’re dealing with housing challenges, you don’t have to figure it out on your own. There are resources available to help you take your next step with more clarity and support. 

• Housing Resources for Veterans: Explore Veteran Saves tools and guidance specifically for Veterans, including support for renting, homeownership, and housing stability. 

• Free Financial Counseling: Through our partnership with the Foundation for Financial Planning, you may be able to connect with a financial professional at no cost. They can help you review your situation, understand your options, and create a plan that works for you. 

Take the Veteran Saves Pledge and build your savings your way. You’ll get free, non-judgmental tips to help you prepare for whatever comes next — including homeownership.