Trouble Due to an Increased Mortgage Payment Amount

Your mortgage payment may increase due to a rate adjustment, increase in escrow, or a balloon payment. If you are unable to handle the higher payments, take action to avoid foreclosure and protect your credit. Consider these options:

1. Refinancing – Refinance if you can. If your loan principal balance is less than the current market value of your home, see a HUD-certified housing counselor or your credit union mortgage lender to see if you can refinance your mortgage loan to a better mortgage product with lower fixed rate and/or a longer term.
   
   Click here for the information and documents you will need.
    
2. Loan Modification – Ask for a loan modification if you owe more on your mortgage than the current market value of your home. Contact a HUD-certified housing counselor or your lender to ask for a loan modification to adjust the rate, term or principal amount of your current mortgage to decrease your payment amount.
   
   Click here for the information and documents you will need.
    
3. Government or Lender Programs – Contact a HUD-certified housing counselor to determine if you qualify for “Making Homes Affordable” or other current government or lender programs for mortgage rescue and assistance.
    
4. Budgeting – Careful money management and budgeting can help while you are working out a solution.
    
5. Community Resources – Call 2-1-1 or your local United Way office to identify community resources available for assistance while you are seeking a mortgage solution.

Avoid Fraud

No matter which choice you make, be careful to avoid fraud. Here's how:

• Never pay a fee up front.
• Never make your payments to anyone other than your servicer.
• Never sign over the deed to your home. 

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