How long does the foreclosure process actually take?

The legal process generally can’t start until a borrower is at least 120 days behind on payments, and once it begins, the timeline to an actual foreclosure sale varies by state. This means there’s typically real time to explore assistance options before losing a home.

Do I have to pay for help avoiding foreclosure?

No. Help is available at no cost from a servicer or through a HUD-approved housing counseling agency, and it’s worth being cautious of anyone charging money, sometimes significant amounts, for foreclosure assistance, since this can be a sign of a scam.

What are my main options if I can’t make my mortgage payment?

Options can include temporarily pausing payments, extending a loan term to lower monthly payments, or in some cases modifying the loan itself. The specific options available depend on the loan and situation, which is exactly what a conversation with a servicer or a housing counselor can help clarify.

Does having no U.S. credit history make it harder to qualify for a mortgage in the first place?

It can, though it’s not necessarily disqualifying. Some lenders offer mortgage products specifically designed for borrowers with a limited or no U.S. credit history, sometimes considering alternative documentation like consistent rent payments or a strong savings pattern instead. Building even a short credit history before applying, where there’s time to do so, tends to widen the range of mortgage options and rates available.

Back to Glossary

What is foreclosure, and what options exist to stop it?

Key takeaways
- Foreclosure is the legal process by which a lender takes possession of a home due to missed mortgage payments.
- The legal foreclosure process generally can’t start until a borrower is at least 120 days behind on payments.
- A mortgage servicer is generally required to inform borrowers about options to avoid foreclosure before proceeding.
- Free help is available through HUD-approved housing counseling agencies, and no one should have to pay for foreclosure assistance.
- Reaching out to a servicer as soon as a payment difficulty is anticipated preserves more options than waiting.

Foreclosure is when a lender takes possession of a home due to missed mortgage payments, but there are real options available before it happens, and most homeowners don’t know about them.

What is foreclosure?

Foreclosure is the legal process through which a mortgage lender or servicer takes possession of a home after the borrower has failed to make payments according to the loan agreement. The legal foreclosure process generally can’t begin⁠(opens in new window) until a borrower is at least 120 days behind on mortgage payments, giving homeowners a real window to seek help before reaching that point. That window exists specifically because federal rules require it, not because any single lender happens to be lenient.

Why understanding foreclosure matters for homeowners

Most people facing missed mortgage payments don’t realize how many options exist before foreclosure becomes unavoidable:

A servicer is generally required to inform borrowers about assistance options. A mortgage servicer must provide accurate information⁠(opens in new window) about loss mitigation options a borrower may be eligible for, and must tell borrowers about these options after two consecutive missed payments, well before the 120-day mark where foreclosure could even begin.
Free help exists. HUD-approved housing counseling agencies can help develop a plan and work with a mortgage company, and no one should have to pay for this kind of help.
Acting early matters. Reaching out to a servicer as soon as a payment difficulty is anticipated, rather than waiting, preserves more of the available options, since submitting a complete assistance application early enough can pause the foreclosure timeline entirely while it’s under review.

What foreclosure risk means for newcomers and immigrants

For an immigrant working toward buying their first home, understanding what happens if payments become difficult, before it ever becomes a real problem, is part of responsible homeownership planning. Buying a first home as an immigrant⁠(opens in new window) often comes with an added layer that domestic-only budgeting doesn’t: a portion of monthly income may already be committed to money sent home, which changes how much room actually exists to absorb an unexpected expense or a temporary income disruption. Factoring that regular commitment into a realistic monthly budget before taking on a mortgage, rather than assuming it will simply fit around the payment, helps avoid a cash flow squeeze that could otherwise put a mortgage payment at risk.

This matters even more during a temporary setback, like a period of reduced hours or a job change. A remittance commitment doesn’t automatically pause just because a mortgage payment is due, and deciding how to prioritize between the two during a difficult month is a real, practical tension worth thinking through before it happens rather than in the middle of a crisis. Knowing that assistance exists, and that acting early preserves more options, removes some of the fear around what can otherwise feel like an overwhelming, unfamiliar process in a new country.

First steps if you’re struggling to make mortgage payments

Contacting a mortgage servicer promptly, using the number on a monthly statement, is worth doing rather than avoiding the call.
Asking specifically about loss mitigation options makes sense, since a servicer is generally required to explain what’s available.
Reaching out to a HUD-approved housing counselor, available at no cost, is worth considering for independent guidance working through the options.

Common questions about foreclosure

How long does the foreclosure process actually take?

The legal process generally can’t start until a borrower is at least 120 days behind on payments, and once it begins, the timeline to an actual foreclosure sale varies by state. This means there’s typically real time to explore assistance options before losing a home.
Do I have to pay for help avoiding foreclosure?

No. Help is available at no cost⁠(opens in new window) from a servicer or through a HUD-approved housing counseling agency, and it’s worth being cautious of anyone charging money, sometimes significant amounts, for foreclosure assistance, since this can be a sign of a scam.
What are my main options if I can’t make my mortgage payment?

Options can include temporarily pausing payments, extending a loan term to lower monthly payments, or in some cases modifying the loan itself. The specific options available depend on the loan and situation, which is exactly what a conversation with a servicer or a housing counselor can help clarify.
Does having no U.S. credit history make it harder to qualify for a mortgage in the first place?

It can, though it’s not necessarily disqualifying. Some lenders offer mortgage products specifically designed for borrowers with a limited or no U.S. credit history, sometimes considering alternative documentation like consistent rent payments or a strong savings pattern instead. Building even a short credit history before applying, where there’s time to do so, tends to widen the range of mortgage options and rates available.

In Summary

Foreclosure is a serious process, but it’s not immediate, and real, often free assistance exists for homeowners who reach out before the situation becomes unmanageable. Understanding your rights and options early, rather than avoiding the difficult conversation, gives you a stronger chance of keeping your home or finding another workable path forward. Understand your options and reach out for help as soon as you anticipate a payment difficulty.

This publication is provided for general information purposes only and is not intended to cover all aspects of the topics discussed herein. This publication is not a substitute for seeking advice from an applicable specialist or professional. The content in this publication does not constitute legal, tax, or other professional advice from Remitly or any of its affiliates and should not be relied upon as such. While we strive to keep our posts up to date and accurate, we cannot represent, warrant, or otherwise guarantee that the content is accurate, complete, or up to date.