Good News for Homeowners Struggling with Mortgage Payments

Jeffrey Simmons
Published Apr 12, 2025


The U.S. Department of Housing and Urban Development (HUD) has good news for homeowners who are finding it hard to keep up with their mortgage payments. 

Through its Federal Housing Administration (FHA), HUD announced new, permanent help options that mortgage companies can offer to homeowners with FHA-insured single-family mortgages. These options are designed to help people keep their homes or avoid foreclosure if they're behind on their mortgage payments.

These new tools update and add to the temporary help options that were put in place during the COVID-19 pandemic. These measures were successful in helping over two million homeowners stay in their homes during tough times. 

Mortgage companies can offer these updated options starting February 2, 2026. The temporary COVID-19 help will still be available until February 1, 2026.

According to Federal Housing Commissioner Julia Gordon, these updated options are based on successful strategies used during the pandemic. HUD aims to help homeowners avoid foreclosure and reduce financial losses. 
 

What’s in the Updated Support Package?


1. Early Help for Struggling Homeowners: Mortgage companies can offer a plan to catch up on payments or a break from payments for up to 12 months. There’s also special support for those affected by natural disasters.

2. Keeping Your Home: Depending on your financial situation, you might qualify for different plans to help you catch up on your mortgage and keep your home. This can include making changes to your loan to reduce your monthly payments if you’re unable to afford your current payments.

3. Options if You Can’t Keep Your Home: If, after exploring all options, you find you can't afford to keep your home, there are ways to leave your home without going through foreclosure, such as selling your home in a pre-foreclosure sale or transferring the deed to your lender.

Regular discussions with industry and consumer groups have helped shape effective strategies for assisting financially struggling homeowners.

Additionally, HUD has opened a 60-day period for public feedback on a planned "Equity Saver Sale" option, allowing homeowners to sell their homes and pause foreclosure processes aimed at those whose homes have retained value.

Check out FHA's Office of Single Family Housing "Drafting Table" for more information.

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Previous Article: $16 Billion Neighborhood Homes Investment Act Aims to Boost Affordable Homeownership

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