 TITLE: What Happens if You Can’t Make Mortgage Payments During a Recession? CONTENT: What to Do if You Can't Pay Your Mortgage\n-----------------------------------------\nIf you find yourself unable to make your mortgage payments, your first step should be to contact your mortgage servicer or lender. The companies that manage mortgages are aware that life can throw curveballs and are often willing to work with borrowers to avoid late payments and foreclosure.\nThe sooner you can reach out to your lender, the better; you may have more options in front of you if there's some time left before your payment's due. Depending on your situation and the policies offered by the servicer or lender, mortgage relief options might include:\n*   **Forbearance**: This happens when a mortgage lender or servicer suspends or reduces your mortgage payments for a certain period of time while you get your finances back in order. Keep in mind that those payments won't be wiped out completely and you'll be required to catch up with your payments at some point in the future. Under the Coronavirus Aid, Relief and Economic Security (CARES) Act of 2020 and subsequent extensions, you can receive up to 18 months of forbearance if you've suffered financially because of the coronavirus pandemic, as long as you have a federally backed mortgage. If you don't have a federally backed mortgage, your mortgage company still might be able to provide forbearance.\n*   **Foreclosure relief**: In some situations, a mortgage lender or servicer might be prohibited from foreclosing on your home. For instance, foreclosures are banned through June 30, 2021, for homeowners with federally backed mortgages who were financially hurt by the coronavirus pandemic. Check with your mortgage servicer or lender about its foreclosure rules. END