Behind on Your Mortgage? Here Is What You Can Do
Falling behind on mortgage payments is stressful, but it does not mean you have run out of options. Understanding what is available is the first step toward finding a path forward.
Quick Answer
If you are behind on your mortgage payments in Florida, you generally have several options: contact your mortgage servicer to discuss forbearance, repayment plans, or loan modification; sell the home on the open market or for cash; pursue a short sale if you do not have enough equity; or explore other foreclosure alternatives. The right option depends on how far behind you are, your equity, your timeline, and your financial goals.
What This Means
Being behind on your mortgage, also called delinquent, means you have missed one or more scheduled payments. This is more common than many people realize. According to the Mortgage Bankers Association, millions of homeowners experience mortgage delinquency each year, often due to circumstances beyond their control.
The most important thing to understand is that being behind does not automatically mean losing your home. There are legitimate options, and the earlier you explore them, the more choices you will typically have.
Why This Happens
Mortgage delinquency happens for many reasons. Common causes include:
- Job loss or reduction in income
- Medical expenses or health-related issues
- Divorce or separation
- Death in the family
- Unexpected major expenses
- Rising insurance, taxes, or HOA costs
- Property issues that reduce rental income
- Relocation before the property sells
- Simply buying more home than the budget can sustain long-term
None of these situations reflect poorly on you as a person. They are financial circumstances that require a practical response.
Your Main Options
Option 1: Contact Your Mortgage Servicer
Your mortgage servicer is the company you make payments to. Most servicers have loss mitigation departments that work with homeowners experiencing difficulty. Possible options may include:
- Forbearance: A temporary pause or reduction in payments
- Repayment plan: An agreement to catch up on missed payments over time
- Loan modification: A permanent change to the terms of your loan, such as a lower interest rate, extended term, or reduced principal
Who this fits: Homeowners who want to keep their home and need temporary or permanent payment relief.
Questions to ask: What loss mitigation programs are available? What documentation do you need? How long does the review process take?
Option 2: Sell the Home
If keeping the home is not feasible or desirable, selling is often the most straightforward way to resolve the situation and protect your financial position. You can sell through a traditional listing with an agent or sell directly to a cash buyer.
Who this fits: Homeowners who have some equity and need to move on from the property.
Questions to ask: How much equity do I have? What is the realistic sale price? What will selling cost?
Option 3: Short Sale
If you owe more than the home will likely sell for, a short sale may be possible. This requires your lender's approval to accept less than the full balance as payment.
Who this fits: Homeowners with little or no equity who cannot afford to bring cash to closing.
Questions to ask: Does my lender participate in short sales? What documentation is required? How long does the process take?
Option 4: Foreclosure Alternatives
If other options are not available, alternatives such as a deed in lieu of foreclosure may be considered. This involves voluntarily transferring the property to the lender in exchange for being released from the mortgage obligation, though the specifics depend on lender cooperation and other factors.
How to Decide
Start with these questions:
- Do I want to keep this home? If yes, contact your mortgage servicer first.
- How far behind am I? The further behind, the fewer options may be available, but options still exist.
- How much equity do I have? This affects whether a traditional sale, cash sale, or short sale makes more sense.
- What is my timeline? Are there deadlines approaching, such as a scheduled auction date?
- What is my financial goal? Credit preservation, equity recovery, and speed are different priorities.
Important Florida Considerations
Florida is a judicial foreclosure state, meaning the foreclosure process goes through the court system. This generally takes longer than in non-judicial foreclosure states, which can provide additional time to explore options. However, the timeline should not be used as a reason to delay action.
The longer you wait, the more interest, fees, and legal costs accumulate, and the fewer options may be available.
Talk Through Your Options
Tell us what is happening with your property. We will help you understand the possible paths.
Schedule Your Free ConsultationFrequently Asked Questions
Can I sell my house if I am behind on the mortgage?
Yes. Being behind on payments does not prevent you from selling. You can sell the property and use the proceeds to pay off the mortgage balance.
How many payments can I miss before foreclosure?
In Florida, mortgage servicers are generally required to wait at least 120 days before filing a foreclosure action. However, negative consequences such as late fees and credit reporting begin sooner.
What happens if I stop paying my mortgage?
Your loan goes into default, late fees accumulate, your credit score is likely affected, and the servicer may eventually begin foreclosure proceedings. However, you still have options at every stage.