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← Back to Mortgage Help GuideMortgage Distress Action Plan
CreditMango.com — Your Step-by-Step Checklist
Emergency Contacts
HUD Housing Counselor Hotline (FREE)800-569-4287
My Loan Servicer____________________
Loss Mitigation Dept Phone____________________
My Case/Reference Number____________________
Attorney (if applicable)____________________
Step 1: Gather Documents
- ☐ Hardship letter (1 page explaining what happened and what you can afford)
- ☐ Last 2 months of pay stubs (all income sources)
- ☐ Last 2 years of federal tax returns (with all schedules)
- ☐ Last 3 months of bank statements (all accounts)
- ☐ Monthly budget worksheet (income vs expenses)
- ☐ Most recent mortgage statement
- ☐ Proof of hardship (medical bills, layoff letter, divorce decree, etc.)
Step 2: Choose Your Path
| Option | Keep Home? | Credit Impact | Best When |
|---|---|---|---|
| Forbearance | Yes | Minimal | Temporary hardship |
| Loan Modification | Yes | Low-moderate | Permanent income drop |
| Short Sale | No | -50 to -130 pts | Underwater, can't afford |
| Deed in Lieu | No | -50 to -125 pts | Short sale failed |
| Chapter 13 | Yes | -100 to -200 pts | Have income, need time |
My chosen option: ☐ Forbearance ☐ Loan Mod ☐ Short Sale ☐ Deed in Lieu ☐ Chapter 13
Step 3: My State Laws
My State
______________
Foreclosure Type
☐ Judicial ☐ Non-Judicial
Typical Timeline
______________
Deficiency Judgment?
☐ Yes (can pursue) ☐ No (protected)
Step 4: Action Timeline
- ☐ Called HUD counselor — Date: ____/____/________
- ☐ Called loan servicer — Date: ____/____/________
- ☐ Submitted loss mitigation application — Date: ____/____/________
- ☐ Received response — Date: ____/____/________ Result: ______________
- ☐ Appealed denial (if applicable) — Date: ____/____/________
- ☐ Consulted attorney — Date: ____/____/________
creditmango.com/mortgage-help — Updated March 2026
This is educational information, not legal advice. Consult an attorney for your specific situation.