HomePostsBehind on Mortgage Payments? We Can Help

Behind on Mortgage Payments? We Can Help

Financial difficulties can happen to anyone. If you’re struggling to make your monthly mortgage payment, the first step toward finding a solution is to reach out to your mortgage servicer (the company you make your mortgage payments to). If you’re a Mr. Cooper customer, here’s how we can help.

Let us know your situation

First, don’t hesitate to contact us. We know there are a lot of factors raising housing costs these days, and we all face unexpected events, like job losses and medical bills. Additionally, it’s part of your rights as a borrower to know how we can help you protect your home with options already in place. The sooner you let us know, the more you’ll have to work with.

To get the process started:

Note: Don’t apply for mortgage assistance with anyone but Mr. Cooper. See our section on scams for more details.

As you speak with us, here are some topics we’ll cover with you:

  • How much you can afford to pay
  • Whether your payment can be reduced
  • What your options are if you want to keep or sell your home

Here are some more potential questions recommended by the Consumer Financial Protection Bureau (CFPB) you may want to discuss with us.

Seek advice from a housing counselor, attorney, or VA loan technician (if you have a VA loan)

That said, you may be nervous about talking to us, and that’s okay! With your permission, a HUD-approved housing counselor can help you talk to us and understand your options. These professionals can help you navigate housing issues, and their help is often available for free. You can learn more in our article about housing counselors.

In some cases, you may want to consult an attorney. If that’s not an affordable option right now, legal aid organizations may provide you with free services. You can learn about more about possible legal resources at USA.gov.

Additionally, if you have a VA loan, VA Regional Loan Centers provide loan technicians who can provide more advice.

Research your options

Depending on the investor who owns your mortgage, you may be eligible for different types of mortgage assistance.

Options may include these and more:

  • Loan modification: Depending on your circumstances, a loan modification could change the terms of your loan to be more manageable.
  • Forbearance: A forbearance is an agreement between you and your servicer that temporarily pauses or reduces your mortgage payments for a set period of time.
  • Repayment Plan: With a repayment plan, an extra amount is added to your regular monthly payment until the missed amount owed is paid back. This usually happens over 3 to 6 months but could vary depending on your circumstances.
  • Refinancing: A refinance involves getting a different loan that replaces your existing loan for the same property, often with a different interest rate.
  • Payment deferral: Available for certain investors and subject to investor approval, a payment deferral allows your lender or servicer to push a set number of monthly mortgage payments to the end of your loan.
  • Deed in Lieu of Foreclosure: A Deed in Lieu of Foreclosure means that you voluntarily transfer ownership of your home to your lender, the lender terminates the loan, and the remaining balance due is forgiven.
  • Short sale: A short sale may allow you to sell your home for less than you owe on the mortgage. This can be helpful if your home is worth less than you owe on your loan.
  • Traditional home sale: While this isn’t mortgage assistance, it may be a good option. With home values being higher, selling your home may allow you to leave your home with a significant amount of home equity in cash.

You can learn more by reviewing our Mortgage Assistance articles. If you’re a servicemember or veteran, please pay special attention to our article about mortgage assistance for military members. You may have additional rights and options.

Finally, your mortgage’s owner may list information on potential solutions for your loan type online. Resources include these by Fannie Mae, Freddie Mac, the Federal Housing Administration (FHA), US Department of Agriculture (USDA), and the Department of Veterans Affairs (VA). Note: You’ll still need to contact us, not your loan’s owner, to apply for mortgage assistance.

Beware of mortgage relief scams

During this time, also take care to watch out for mortgage relief scams. You may be contacted randomly by someone posing as Mr. Cooper, a government agency, or another source demanding a payment or making false promises of help to get your personal information.

These schemes can be very sophisticated and may come by mail (including elaborate letters with our logo), phone, email, the web, or text. Learn more about how to avoid mortgage relief scams here.

Learn about foreclosure myths

Finally, if you’re worried about foreclosure, rest assured that we’ll work to help you avoid it. It’s a myth that mortgage companies want to foreclose on homes. In addition to being devastating to homeowners, foreclosures can cost lenders tens of thousands of dollars in losses.

We’re here to protect your dream of homeownership, and whenever you need it, we’ll be here to help.