Foreclosure filings are rising again, which makes the first few calls after a missed mortgage payment more important. ATTOM's Mid-Year 2026 U.S. Foreclosure Market Report, released July 16, counted 227,548 U.S. properties with foreclosure filings in the first half of 2026, up 21% from a year earlier.

That does not mean every late borrower is out of options. It means homeowners should treat a missed payment, notice of default or scheduled sale date as a deadline problem, not a paperwork problem to hide from.

Do this first

  1. Call your mortgage servicer. Ask what loss-mitigation options are available, what documents are required and which dates matter in your state. Write down the representative's name, the time and the next step.
  2. Contact a HUD-approved housing counselor. The Consumer Financial Protection Bureau says counselors can help borrowers understand options and work with mortgage companies, often at no cost. HUD lists (800) 569-4287 as a way to find a counselor.
  3. Open every notice and save copies. The Federal Trade Commission warns that late fees, default-related costs and credit damage can build quickly after missed payments. Keep envelopes, notices, statements and proof of any submitted documents.
  4. Ask about the right option for the hardship. Possible paths can include repayment plans, forbearance, loan modification, a short sale or a deed in lieu of foreclosure. The right answer depends on the loan type, income, equity, state timeline and whether the hardship is temporary.
  5. Screen for scams before paying anyone. The FTC says no company can guarantee it will stop foreclosure, and up-front fees for promised mortgage relief are a warning sign. Legitimate help should not require signing over the deed or stopping contact with your servicer.

Check these details

Start with the loan type. FHA, VA, Fannie Mae, Freddie Mac and private loans can have different review paths. If you are unsure who owns or guarantees the loan, ask the servicer and a housing counselor to help verify it.

Next, identify the stage of the process. HUD notes that foreclosure does not happen overnight, but timelines vary by state. A borrower who has missed one payment may have more room to negotiate than someone with a sale date already scheduled.

Finally, compare any proposed solution with your real budget. A repayment plan that is too large can fail quickly. A modification may help only if the new payment is sustainable. A short sale or deed in lieu can still affect credit, but the FTC says foreclosure usually has a heavier credit impact.

Common mistakes

  • Waiting for the next letter. Servicers and courts run on deadlines. Silence rarely creates leverage.
  • Sending partial documents. Incomplete applications can restart review loops. Ask for a checklist and confirmation that the package is complete.
  • Ignoring taxes, insurance or HOA costs. A mortgage fix may not solve the budget if other housing costs caused the strain.
  • Believing pressure tactics. Be careful with anyone who asks for an up-front fee, tells you to stop paying the lender or promises a guaranteed result.

When to get help

Get help immediately if you receive a notice of default, court filing or sale notice, or if your servicer says documents are missing after you submitted them. A HUD-approved counselor can help organize the next call. If there is already a legal case, ask about legal aid or a foreclosure attorney in your state.

The sooner you ask for help, the more options you are likely to preserve. The goal is not to predict the housing market. It is to keep a payment problem from turning into a rushed decision.