If you're behind on your mortgage payments or worried about losing your home to foreclosure, talking to a HUD-approved housing counselor is a smart, free first step. These counselors offer foreclosure prevention counseling to help you understand your options, apply for an alternative to foreclosure (like a loan modification), and work with your mortgage servicer. The sooner you talk to a HUD-approved housing counselor, the better.
Foreclosure prevention counseling is a service that helps homeowners understand their options when facing foreclosure. HUD-approved housing counselors work with homeowners to assess their financial situation, review loan documents, and explore foreclosure alternatives such as a loan modification, forbearance, or repayment plan.
These counselors offer more than just advice. They also help homeowners communicate with lenders (through the loan servicer) and submit necessary paperwork when applying for a loss mitigation option (an alternative to foreclosure).
Foreclosure prevention counseling can be an essential first step in keeping your home, and meeting with a counselor early in the foreclosure process (or before one starts) can significantly increase your chances of keeping your home.
A HUD-certified housing counselor is a housing counselor who has passed the HUD Certification examination, works for a participating agency, and is certified by HUD as competent to provide housing counseling services. (24 C.F.R. § 214.3 (2025).)
These counselors are professionally trained to provide advice and assistance to homeowners facing financial hardship, including those at risk of foreclosure. HUD-approved housing counselors work at nonprofit agencies and are knowledgeable about mortgage options, foreclosure laws, and available assistance programs.
A HUD-approved housing counseling agency is a private or public nonprofit organization exempt from federal taxation and approved by HUD. They offer foreclosure prevention counseling services under federal standards. The agency must act under federal guidelines and laws when providing housing counseling services to clients directly or through their affiliates or branches. (24 C.F.R. § 214.3 (2025).)
Yes, if you work with a HUD-approved housing counseling agency, foreclosure prevention counseling is typically free. HUD-approved housing counselors are paid through government grants and, in some cases, grants from major mortgage lenders. So, unlike for-profit foreclosure prevention companies that charge fees for their services, assistance from a HUD-approved housing counselor at a HUD-approved housing counseling agency is generally available at no cost.
Some agencies might charge a small fee for specific services, like credit report reviews or budget counseling, but the core foreclosure prevention help, including reviewing your loan documents, explaining your options, and assisting with communication to your lender, is usually at no cost. Be cautious of anyone who asks for large upfront fees or guarantees they can stop a foreclosure, these can be signs of a foreclosure prevention scam.
Housing counselors are well-trained in the various ways you might be able to avoid a foreclosure. Your HUD-approved housing counselor can help you assess your loan situation and work with your servicer to find an option that could keep you in your house. They can help you understand your mortgage terms, evaluate your budget, and explore solutions like a loan modification, repayment plan, or forbearance. If you decide you want to give up the home, a counselor might be able to help you arrange a short sale or deed in lieu of foreclosure. A counselor can also give you information about these options.
Most importantly, they can guide you through the process of communicating with your lender and submitting the right paperwork. These steps can feel overwhelming on your own. Because these counselors are HUD-approved, you can trust that their services are reliable and won't cost you anything (or will cost very little). Their support can reduce your stress and improve your chances of avoiding foreclosure.
When you contact a HUD-approved counseling agency, you'll be scheduled for an interview, typically by phone or in person with a counselor. With some agencies, you can meet online. (24 C.F.R. § 214.300 (2025).)
During the counseling session, the housing counselor will likely:
The meeting will probably take around 60 to 90 minutes. The counselor will use the information you provide to develop an action plan. (24 C.F.R. § 214.300 (2025).)
At the meeting, the counselor will want to get a handle on your overall financial situation. Again, they'll ask about your income, debts, assets, mortgage, and home value. So, before the appointment, it's a good idea to gather information about your finances, including:
Once you or your housing counselor call your servicer and ask for a way to avoid foreclosure, the servicer will probably send you a loss mitigation package. You'll fill out and return the forms with the help of your counselor. Your counselor will probably work with the mortgage servicer on your behalf throughout the process.
While counselors can't guarantee you'll keep your home, homeowners who work with a counselor are nearly three times more likely to avoid foreclosure through a loan modification or another solution. Still, while housing counselors can do a lot, they're limited by the servicer and investor (loan owner) policies, called "loss mitigation guidelines." These guidelines outline the rules and eligibility requirements for modifications and other options. So, you might not qualify for an alternative to foreclosure, no matter what you or the counselor do.
But even if you think you won't qualify for a modification or a different foreclosure alternative, it certainly doesn't hurt to talk to a counselor and submit a loss mitigation application to your servicer. You can apply for loss mitigation either before the foreclosure officially starts or after a foreclosure has already started. Under federal and some state laws, a servicer can't start or continue with a foreclosure while your completed application is pending.
You might get a more affordable mortgage payment for the future or qualify for a loss mitigation option you hadn't previously considered.
The federal Department of Housing and Urban Development (HUD) has a list of approved counselors. To find a counselor near you, use HUD's housing counseling agency (HCA) Locator tool. This tool makes finding HUD participating HCAs easy for consumers. You can also call 800-569-4287 or 202-708-1455 (TTY).
You can also find a counselor by calling the HOPE Hotline, open 24 hours a day, seven days a week, at 888-995-HOPE (4673), or going to the Consumer Financial Protection Bureau (CFPB) "Find a housing counselor" website.
Choosing the right foreclosure prevention counselor is an important step in getting the help you need to avoid a foreclosure. Again, start by looking for a HUD-approved housing counselor through a nonprofit HUD-approved housing counseling agency. Avoid for-profit companies that offer foreclosure prevention (rescue) services.
Unlike for-profit foreclosure rescue companies, a HUD-approved housing counseling agency will take time to understand your situation, explain your options clearly, and never pressure you to sign anything, pay large upfront fees, or make unrealistic promises. Avoid anyone who promises to "save your home" for a fee or suggests you stop paying your mortgage; they're most likely a scammer.
The CFPB offers additional information about foreclosure prevention counseling and how a HUD-approved counseling agency can help you.
Visit the HUD exchange (an online platform that provides program information, guidance, and tools to homeowners and others) to learn more about housing counseling.
If you're facing a foreclosure, use this checklist to help you stay organized, understand your options, and take proactive steps.
◊ Review your income, expenses, and debts.
◊ Identify the cause of your financial hardship (such as job loss, illness, or divorce).
◊ Gather your important documents, such as recent mortgage statements, tax returns, pay stubs, bills, and bank statements.
◊ Contact your mortgage servicer as soon as you anticipate you won't be able to make your mortgage payment.
◊ Ask about available loss mitigation options (alternatives to foreclosure).
◊ Keep a record of all communications with your servicer. Take notes about phone conversations and keep all written communications.
◊ Find a counselor online or by calling 800-569-4287.
◊ Schedule a free appointment to discuss options and make a plan.
◊ Have your financial documents available for the meeting.
◊ Consider the various loss mitigation options for keeping your home, including a loan modification, forbearance, and repayment plan. Also, think about whether filing for bankruptcy might be appropriate for your situation.
◊ If keeping the home isn't a realistic option, consider a short sale, deed in lieu of foreclosure, or just letting the foreclosure proceed. To learn about your options if you're facing foreclosure, get Nolo's The Foreclosure Survival Guide.
◊ Review your mortgage or deed of trust and learn how foreclosure works in your state.
◊ Consult a foreclosure attorney if needed, especially if you've received notice that a foreclosure has officially started.
◊ Open and respond to all mail from your loan servicer promptly. Answer calls from your loan servicer. These communications often have information about loss mitigation options and foreclosure status updates.
◊ Meet all deadlines for paperwork and follow-ups.
◊ Keep copies of everything you submit or receive.
◊ Don't pay for loan modification or counseling services. HUD-approved housing counselors are free.
◊ Avoid companies that guarantee to "stop foreclosure immediately."
◊ Report scams to the Federal Trade Commission, your state Attorney General's Office, or your local Better Business Bureau.
Consider talking to a foreclosure lawyer if you're facing an imminent foreclosure sale or have received legal papers. A lawyer can answer questions about how the foreclosure process works in your state, including how much time you have before losing your home, explain how to fight the foreclosure in court, and tell you whether you have any defenses to the foreclosure.