Modify Your Loan
If you talk to your lender about the trouble you're having making your payments, they might be able to modify your loan and ease your financial burden. Loan modifications are permanent changes to your mortgage. If you have a fixed-rate loan, this might include extending the period of time you have to pay your loan off or lowering your interest rate to reduce your monthly payment. Loan modifications are handled on an individual basis and may also include adding your overdue payments back into the balance of your mortgage.
A partial claim is a loan modification offered by the U.S. Department of Housing and Urban Development (HUD) for FHA-approved loans [source: HUD]. The FHA provides an interest-free loan to pay off your missed mortgage payments, and it doesn't need to be paid off until you sell your home or make your last mortgage payment [source: HUD]. Another FHA loan is available through the Home Affordable Modification Program (HAMP). Like the partial claim, this FHA loan will help you pay off your missed payments, but may also provide additional money to help lower your monthly payment [source: HUD]. An advance claim is a similar program that may be available from your lender for a conventional, non-FHA mortgage.