Your options depend on how far behind you are and what your lender will accept
If you cannot pay your full mortgage payment this month, you have several paths forward, but the one you take matters. Lenders handle partial payments differently — some will accept them and credit them to your account, others will reject them and treat the whole payment as late, and some will hold the money in a suspense account while your account falls behind anyway. Your first step is to contact your lender before the payment due date, not after, because the options available to you narrow once a payment is officially late.
The most common solutions are a partial payment arrangement (where your lender agrees in writing to accept less than the full amount), a loan modification (which changes your interest rate or term to lower your monthly payment permanently), a forbearance agreement (which pauses or reduces payments temporarily), or a refinance (which replaces your loan with a new one at different terms). Which one works depends on your situation, your lender's policies, and how much time you have.
Key Takeaways
- Contact your lender before your payment is due, because lenders often reject partial payments and treat them as late even if you send money.
- A written partial payment agreement is different from sending a check for less — your lender must agree in advance or the payment may not count.
- Forbearance pauses payments temporarily but does not erase what you owe; the missed payments are added to the end of your loan or due in a lump sum later.
- Loan modifications lower your monthly payment by extending your term or lowering your rate, but they reset your loan timeline and may cost you more interest overall.
- If you are behind by more than one payment, your lender may require a loan modification or forbearance before accepting partial payments going forward.
Calling your lender and what to say
When you call, have your loan number and account number ready. Ask to speak with a representative in the loss mitigation or loan servicing department — not the general customer service line. Tell them the specific amount you can pay this month and ask what options are available to you. Do not wait until the payment is five days late; lenders are more flexible before the due date passes.
Be prepared to explain why you cannot pay the full amount. Lenders ask this not to judge you but to determine which solution fits. A temporary income loss (job change, reduced hours, medical leave) points toward forbearance. A permanent income change (job loss, retirement, disability) points toward a loan modification. A one-time shortfall (car repair, medical bill) might may have access to for a partial payment arrangement if you can catch up next month.
Ask the lender to send you any agreement in writing before you make a partial payment. A verbal promise to accept less than the full amount is not binding — the lender's system may still mark your account late. Written confirmation protects you and gives you proof of what was agreed.
Partial payment arrangements and why they often fail
A partial payment arrangement means your lender agrees in writing to accept less than your full monthly payment without marking your account as delinquent. This is not the same as straightforward sending a smaller check. If you send a check for $1,500 when your payment is $2,000 and you have no written agreement, most lenders will reject it, return it, or hold it in a suspense account while your account falls 30 days behind.
Partial payment arrangements work best when you can commit to a timeline — for example, "I will pay $1,500 this month and $2,000 next month" — and when the shortfall is small relative to your payment. Lenders are more willing to accept a $200 shortfall than a $1,000 one. If you cannot specify when you will catch up, ask about forbearance instead.
The risk of a partial payment arrangement is that it does not solve the underlying problem. If you cannot pay $2,000 this month, you may not be able to pay $2,000 next month either. If that happens, you will owe both months plus any late fees, and your lender may stop accepting partial payments and demand the full amount or a loan modification.
Forbearance: pausing payments without erasing the debt
Forbearance is a temporary pause or reduction in your mortgage payment, usually lasting three to twelve months. During forbearance, you do not make your regular payment, but you also do not fall behind — the lender agrees not to report you as delinquent to credit bureaus. However, forbearance does not erase the payments you skip. At the end of forbearance, you owe all the skipped payments back.
How you repay depends on your lender and the forbearance agreement. Some lenders add the missed payments to the end of your loan (so if you skip three months of $2,000 payments, you owe an extra $6,000 spread across the remaining years). Others require a lump-sum payment at the end of forbearance. Some offer a combination — you resume your regular payment plus an extra amount each month to catch up over time. Ask your lender which method they use before you agree.
Forbearance is most useful if your hardship is temporary — you lost your job but expect to be hired again in six months, or you had a medical emergency but will return to full income soon. If your income loss is permanent, forbearance only delays the problem. In that case, a loan modification is usually the better choice.
Loan modifications: lowering your payment by changing the loan terms
A loan modification changes one or more terms of your mortgage — usually the interest rate, the loan term (how many years you have to pay it back), or both. The goal is to lower your monthly payment so you can afford it going forward. A modification is permanent, unlike forbearance, but it resets your loan timeline and may cost you more in total interest.
For example, if you have 25 years left on a 30-year mortgage at 4 percent interest, a modification might extend your term to 30 years and lower your rate to 3.5 percent, reducing your monthly payment by several hundred dollars. You will pay more interest overall because you are borrowing for longer, but your monthly payment becomes manageable.
Loan modifications require your lender to review your income, debts, and assets. You will need to provide recent pay stubs, tax returns, and a list of your monthly expenses. The process takes four to eight weeks. If your lender approves the modification, you will sign new loan documents, and your payment will change on your next billing cycle.
Not all lenders offer modifications, and not all borrowers are approved. Lenders are more likely to modify a loan if you have been with them for several years, if your income is stable (even if lower than before), and if you have equity in the home. If your lender denies a modification, you can ask for a second review or contact a HUD-approved housing counselor, who can sometimes negotiate on your behalf.
Refinancing: replacing your loan with a new one
Refinancing means paying off your current mortgage with a new loan, usually at a different interest rate or term. If interest rates have dropped since you took out your original loan, refinancing can lower your payment. If you have built equity, you might refinance into a shorter term (15 years instead of 30) without raising your payment much.
Refinancing requires a new process, a credit check, and a home appraisal. It also costs money — closing costs typically run 2 to 5 percent of your loan amount, though some lenders offer no-cost refinances that roll the fees into your new loan balance. The process takes three to six weeks.
Refinancing is different from a loan modification because you are getting a new loan from potentially a different lender, not renegotiating with your current one. If you cannot pay your current mortgage, you may not may have access to for a refinance because your credit or income will not meet the new lender's standards. If you are behind on payments, most lenders will not refinance you until you are current again.
What happens if you do nothing
If you do not contact your lender and do not make a payment, your account will be marked late after 30 days. Late fees will be added to your balance. After 90 days, your lender may report the delinquency to credit bureaus, which will damage your credit score. After 120 days, your lender may begin foreclosure proceedings, which is a legal process to take back the home.
Foreclosure does not happen overnight — it typically takes several months — but once it starts, your options shrink. You can still negotiate a loan modification or forbearance during foreclosure, but your lender is less motivated to work with you because they are already in the process of taking the home back. The longer you wait to contact your lender, the fewer choices you have.
Getting help from a housing counselor
If you are struggling to communicate with your lender or you are not sure which option is right for you, a HUD-approved housing counselor can help. These counselors work for nonprofits and are free to use. They can review your finances, explain your options, help you prepare documents for a loan modification, and sometimes negotiate with your lender on your behalf.
To find a counselor, call 1-800-569-4287 (the HUD hotline) or visit HUD.gov and search for counseling agencies in your area. You can also call 211 and ask for housing counseling. Counselors can meet with you by phone, video, or in person, and they can work with you even if you are already behind on payments.
Frequently Asked Questions
If I send a partial payment, will my lender have to accept it?
No. Without a written agreement, most lenders will reject a partial payment or hold it in a suspense account while your account falls behind. Always get written confirmation from your lender before sending less than the full amount.
Will forbearance hurt my credit score?
Forbearance itself does not hurt your credit if your lender agrees not to report you as delinquent. However, if you were already late before forbearance started, that late payment is already on your credit report. Once forbearance ends and you resume payments, the damage gradually fades.
Can I modify my loan if I am already behind on payments?
Yes, but your lender may require you to bring your account current first, or they may roll the missed payments into the new loan. Ask your lender whether you can explore for a modification while behind, because policies vary.
How long does a loan modification take?
Most lenders take four to eight weeks to review your process and make a decision. During this time, you should continue making your regular payment if you can, or contact your lender about forbearance to avoid falling further behind.
What if my lender will not work with me?
Contact a HUD-approved housing counselor. They can review your situation, explain options you may not know about, and sometimes negotiate with your lender. If your lender is still unwilling to help, a counselor can also discuss whether selling the home or a short sale might be better than foreclosure.