Free resources for homeowners facing financial hardship

Talk to a HUD-approved housing counselor first

If you are struggling to pay your mortgage, you do not need to pay anyone to get reliable guidance. HUD-approved housing counseling agencies provide free, one-on-one assistance from trained counselors who understand mortgage workouts and foreclosure alternatives. These agencies operate under federal guidelines and exist to help homeowners understand their options without selling them a product. A counselor can review your loan documents, explain the difference between a forbearance and a modification, and help you prepare a complete package to send to your servicer. You can locate an agency through hud.gov or by calling the HUD counselor locator line at 800-569-4287.

When to reach out. Contact a counselor as soon as you anticipate a problem, immediately after a missed payment, or the day you receive a notice from your servicer. Early contact generally leaves more options on the table and gives you time to gather paperwork without rushing. Even if you are already in the foreclosure process, a counselor can help you understand deadlines and available defenses.

What to have ready before the call:

• Your loan number, recent mortgage statements, and any letters or default notices from your servicer
• Income documents such as recent pay stubs, unemployment award letters, or benefit statements
• A one-page hardship summary explaining what changed and how it affects your ability to pay
• A rough monthly budget showing your income and essential expenses

Having these materials on hand allows the counselor to move quickly and give you specific guidance rather than general information.

File and research through the Consumer Financial Protection Bureau

The Consumer Financial Protection Bureau maintains free mortgage tools, checklists, and a submit-a-complaint portal for homeowners who believe something has gone wrong with their loan servicing. The website includes worksheets that help you organize your finances before negotiating with your lender, as well as explanations of common servicing rules that describe how your payments should be handled and how your servicer must respond to certain requests. If you believe your servicer misapplied a payment, charged an improper fee, gave you conflicting instructions about a workout, or failed to respond to your written request within the required timeframe, the complaint portal creates a record and routes your issue to the company for a formal response.

When to use this resource. Use the CFPB when you need to understand your rights in plain language, want to verify whether a servicer action is typical, or need to escalate a dispute that has not been resolved through normal customer service channels. Filing a complaint does not replace direct communication with your servicer, but it does add a layer of accountability.

What to have ready before you file:

• Your loan or account number
• Copies of all correspondence with your servicer
• A simple timeline of events with dates
• Statements or payment records that support your concern

Keep your explanation factual and concise. The portal will generally ask for contact information and details about what you have already done to resolve the issue directly.

Connect with NeighborWorks America and local 211 services

NeighborWorks America is a national nonprofit network that offers foreclosure-prevention counseling and financial coaching. Their counselors focus on education and long-term stability rather than pushing a single solution. They can help you build a realistic budget, prioritize debts, and understand the pros and cons of retention options versus exit strategies. Services are typically free or based on a sliding scale, and they are designed to complement the work you do with your servicer rather than replace it.

When to use this resource. Reach out to NeighborWorks early, even if you are unsure whether you want to keep the home or pursue alternatives. Coaching can help you stabilize your overall finances while you decide on the best path forward.

Dialing 211 connects you to local health and human services agencies that may provide short-term assistance with rent, utilities, or food. Reducing these expenses can sometimes free up money to apply toward your mortgage. Operators can direct you to programs available in your specific zip code, including emergency funds or payment plans that keep other bills current while you address the mortgage.

What to have ready:

• For NeighborWorks counseling, the same financial documents you would bring to a HUD counselor
• For 211, your identification, household size, recent utility bills, and a brief list of current expenses

Know whether you need one-time help or ongoing support so the operator can match you with the right program.

Know the warning signs of a foreclosure-rescue scam

Legitimate HUD-approved counseling should never begin with an invoice. Established nonprofits do not charge upfront fees to review your situation, and they do not promise a specific result. If someone assures you they can stop foreclosure before seeing your paperwork, that is a reason to walk away.

Common red flags include:

• Demanding an upfront fee before doing any work
• Telling you to stop communicating with your lender or lawyer
• Asking you to sign over your deed, title, or power of attorney
• Pressuring you to wire money or make payments to a third party instead of your servicer
• Using high-pressure tactics or promising a specific outcome no matter your circumstances

A genuine counselor will encourage you to remain in contact with your servicer. They will give you time to review documents, ask questions, and discuss options with your family. They will explain that outcomes depend on your specific loan, investor guidelines, and current program rules. If you feel rushed, confused, or asked to hide information, pause and contact a HUD-approved agency instead.

The next step

JT Management helps Southern California homeowners review their situations and coordinate the free resources available to them. If you would like a fresh perspective on how to align these programs with your broader financial picture, schedule a free consultation with our team.