April 13, 2020


Facing a mortgage default can be daunting, but you have options! Find out what they are and make an informed decision!

Your options for when you can't pay the mortgage!

Pay Later

Simply missing a payment is an option. By federal law your lender can't take any action towards foreclosure until you are 120 days behind. You can just make the payment later, if you anticipate being able to. You will take a credit hit  and incur a late fee, but that will the worst of it. 


In a forbearance, the lender agrees to let you skip several payments, and structures a repayment plan to make up the missed payments. This is a good option if you feel you will be able to make up the missed payments in a few months time.

Loan Modification

In a loan modification, the lender permanently restructures your loan to make the payment more affordable. This is an option if you will miss multiple payments and not be able to pay more temporarily to bring the account current. You will need to have sufficient and stable source of income to qualify for a loan modification. 

Sell the home

If your income and/or location situation has been altered permanently, selling the home is a wise choice. The key is to get started early to avoid foreclosure action, fees and penalties. If you don't have the equity to sell, a short sale is an option.

Walk away and let the home foreclose. 

By far the worst option available to you. Walking away will severely damage your credit for many years to come, and Connecticut allows deficiency judgments. That means even if you walk away from your home, the lender can still pursue you for their losses.

Last Updated on April 13, 2020 by Minna Reid

About the author 

Minna Reid

Minna Reid is The Broker - Owner of Reid Real Estate Group. Reid Real Estate Group is a full-service Connecticut residential real estate brokerage, specializing in helping homeowners with legal and financial challenges including short sales, probate sales and tax lien complications.

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