7 Government Programs to Stop Foreclosure

If you’re falling behind on your mortgage and worried about losing your home, you’re not alone — and you have more help available than you might realize. There are government programs to stop foreclosure that were specifically created for homeowners in your situation. These aren’t loopholes or gimmicks. They’re federally and state-funded lifelines designed to help families stay in their homes when financial hardship strikes.

The problem? Most homeowners don’t know these programs exist — or they assume they won’t qualify. That’s a mistake that costs people their homes every day. Whether you’re in pre-foreclosure, already received a notice of default, or actively fighting to stop a foreclosure, at least one of these programs may be able to help you.

If you’re dealing with this right now and need immediate help, you can find free foreclosure assistance programs, housing counselors, and legal resources here:
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Let’s walk through the seven most impactful government programs available – what they do, who qualifies, and exactly how to apply.

1. Homeowner Assistance Fund (HAF)

The Homeowner Assistance Fund is one of the most powerful — and underused — government programs to stop foreclosure available today. Created under the American Rescue Plan Act of 2021, HAF allocated nearly $10 billion to help homeowners who experienced financial hardship during or after the COVID-19 pandemic.

Each state administers its own HAF program, which means eligibility rules and benefit amounts vary. But the core mission is the same: keep families in their homes by covering past-due mortgage payments, property taxes, insurance, and even utility costs.

What HAF Can Cover

Past-due mortgage payments (often up to 12–18 months of arrears)
Delinquent property taxes
Homeowner’s insurance premiums
HOA fees and liens
Utility arrears in some states
Forward mortgage payments (up to 3 months in some states)

Who Qualifies

Eligibility varies by state, but generally you must:

Own and occupy your home as your primary residence
Have experienced a financial hardship after January 21, 2020
Have a household income at or below 150% of your area’s median income
Be currently delinquent or at risk of delinquency on housing expenses

How to Apply

Visit your state’s HAF program website directly. You can find your state’s program by searching “[your state] Homeowner Assistance Fund” or visiting our state resource pages for California, Texas, Florida, Illinois, or New York. Applications are free, and you should never pay anyone to help you apply.

Important: Some states are running low on HAF funds in 2026, while others have extended their programs. Apply as soon as possible — this money won’t last forever.

2. FHA Loss Mitigation Options

If you have an FHA-insured mortgage (backed by the Federal Housing Administration), you have access to a robust set of loss mitigation tools that your servicer is required to offer you before foreclosure can proceed.

FHA loss mitigation is not a single program — it’s a series of options your servicer must evaluate you for, in a specific order called the “waterfall.” This is one of the most structured government programs to stop foreclosure, and it’s built directly into the terms of your loan.

FHA Loss Mitigation Options Include

Informal and Formal Forbearance — temporary pause or reduction in payments while you recover financially. Learn how this compares to other options in our guide on forbearance vs. loan modification.
FHA-HAMP (Home Affordable Modification Program) — a permanent loan modification that can reduce your monthly payment by extending your loan term, reducing the interest rate, or adding a partial claim.
Partial Claim — HUD pays a portion of your past-due amount on your behalf. This becomes a second, interest-free lien on your property that isn’t due until you sell, refinance, or pay off your first mortgage.
Pre-Foreclosure Sale (Short Sale) — if keeping the home isn’t viable, FHA may approve a sale for less than what’s owed.
Deed in Lieu of Foreclosure — a last resort where you voluntarily transfer the home back to HUD.

How to Apply

Contact your mortgage servicer directly and ask for the loss mitigation department. Tell them you have an FHA loan and want to be evaluated for all available loss mitigation options. You’ll need to submit a complete application package including proof of income, a hardship letter, and bank statements. If your servicer is unresponsive, call the FHA Resource Center at 1-800-304-9320.

3. VA Home Loan Assistance

Veterans and active-duty service members with VA-backed mortgages have access to some of the strongest foreclosure prevention protections of any loan type. The Department of Veterans Affairs doesn’t just guarantee your loan — they actively intervene to help you keep your home.

VA Foreclosure Prevention Options

Repayment Plans — spread missed payments over several months on top of your regular payment
Special Forbearance — temporary payment relief while you get back on your feet
Loan Modification — permanently change the terms of your loan to make payments affordable
VA Compromise Sale (Short Sale) — sell for less than owed with VA approval
Deed in Lieu — transfer the property back with minimal credit damage
Servicemembers Civil Relief Act (SCRA) protections — interest rate caps at 6%, protection from foreclosure during active duty and up to one year after

How to Apply

Contact your loan servicer first. Then reach out to your VA Regional Loan Center at 1-877-827-3702. VA loan technicians will work directly with your servicer on your behalf — they’re essentially free advocates for veterans. You can also visit the VA’s home loan website for additional resources.

The VA has a vested interest in keeping you in your home. Use them. That’s what they’re there for.

4. USDA Rural Development Loan Assistance

If your home loan is backed by the USDA Rural Housing Service, you have access to loss mitigation options that many homeowners in rural and suburban areas don’t even know about.

USDA Foreclosure Prevention Options

Special Loan Servicing — extends the term of your loan up to 40 years to reduce monthly payments
Moratorium (Forbearance) — suspends payments for a temporary period during financial hardship
Payment Assistance Recapture Deferral — restructures the subsidy recapture amount owed to make the loan more affordable
Loan Modification — adjusts your interest rate, term, or both to create a sustainable payment

How to Apply

Contact your USDA Rural Development state office directly. You can find your local office at the USDA Rural Development website. Be prepared to provide documentation of your financial hardship, current income, and monthly expenses. USDA servicers are generally more flexible than conventional loan servicers, and the process is often more personal since these offices serve smaller communities.

5. HUD Housing Counseling Program

This isn’t a direct financial assistance program — it’s something even more valuable for many homeowners. The U.S. Department of Housing and Urban Development (HUD) funds a nationwide network of housing counseling agencies that provide free, expert guidance to homeowners facing foreclosure.

A HUD-approved housing counselor can:

Review your finances and explain all your options
Help you complete loss mitigation applications
Communicate with your servicer on your behalf
Connect you with state and local assistance programs
Help you create a budget and sustainable housing plan
Guide you through applications for HAF and other programs

How to Connect

Call 1-800-569-4287 to find a HUD-approved counselor near you, or visit hud.gov/counseling to search by location. This service is completely free. If anyone asks you to pay for housing counseling, that’s a red flag — legitimate HUD-approved counselors never charge for foreclosure prevention counseling.

We recommend contacting a HUD counselor as your very first step, regardless of which other programs you plan to apply for. They can help you navigate everything else on this list.

6. State and Local Foreclosure Prevention Programs

Beyond the federal programs listed above, most states run their own foreclosure prevention and mortgage assistance programs. These are funded through a combination of state budgets, federal block grants, settlement funds from banks, and dedicated housing trust funds.

State-level programs can offer benefits that federal programs don’t, including:

Emergency mortgage assistance grants that don’t need to be repaid
Interest-free bridge loans to bring your mortgage current
Mandatory mediation programs that force your lender to negotiate with you
Legal aid funding for free or low-cost foreclosure defense attorneys
Property tax assistance for homeowners who’ve fallen behind

State Program Examples

California — The California Mortgage Relief Program has distributed hundreds of millions in HAF funds, covering up to $80,000 per household for past-due mortgage payments, property taxes, and other housing costs.

New York — Homeowners benefit from mandatory settlement conferences in court and the NYS Homeowner Assistance Fund, plus robust legal aid networks for free representation.

Texas — The Texas Homeowner Assistance Fund provides up to $65,000 for mortgage reinstatement, past-due property taxes, and insurance. Given Texas’s fast non-judicial foreclosure timeline, applying early is critical.

Florida — Florida’s HAF program, combined with its judicial foreclosure process that provides more time, offers homeowners a meaningful window to get help.

Illinois — The Illinois Homeowner Assistance Fund and the state’s mandatory foreclosure mediation program in many counties give homeowners multiple layers of protection.

How to Find Your State’s Programs

Start with our state resource pages, which list current programs for each state. You can also ask a HUD-approved housing counselor — they’ll know about programs in your area that you might not find on your own, including county and city-level assistance.

7. Fannie Mae and Freddie Mac Flex Modification Program

If your mortgage is owned or guaranteed by Fannie Mae or Freddie Mac — and a large percentage of American mortgages are — you may qualify for the Flex Modification program. While Fannie and Freddie are government-sponsored enterprises (not federal agencies), their programs are backed by federal oversight and are widely considered among the most effective government programs to stop foreclosure.

What the Flex Modification Offers

A target payment reduction of 20% or more from your current monthly payment
Potential interest rate reduction
Loan term extension up to 40 years
Principal forbearance (a portion of your balance is set aside, interest-free, until the loan matures)

Who Qualifies

Your loan must be owned by Fannie Mae or Freddie Mac (use their lookup tools to check)
You must be at least 60 days delinquent (or in an active forbearance plan)
The home must be your primary residence, second home, or investment property (requirements vary)

How to Apply

Contact your mortgage servicer — the company you send your payments to — and ask about a Flex Modification. Your servicer is required to evaluate you for this program if your loan is backed by Fannie Mae or Freddie Mac. You can check whether Fannie Mae owns your loan at knowyouroptions.com/loanlookup and Freddie Mac at freddiemac.com/loanlookup.

For more details on how loan modifications work, read our complete guide: Loan Modification Explained: How to Lower Your Mortgage Payment.

How to Maximize Your Chances of Approval

No matter which program you apply to, these steps will improve your chances of getting help:

Act early. The sooner you reach out, the more options you have. Waiting until the auction date is set means many doors have already closed.
Gather your documents. Every program requires proof of income, a hardship letter, bank statements, and tax returns. Having these ready speeds up the process significantly.
Apply to multiple programs simultaneously. Don’t put all your eggs in one basket. Apply for HAF while also requesting loss mitigation from your servicer.
Get a HUD counselor in your corner. Call 1-800-569-4287. They’ll help you navigate applications and advocate on your behalf.
Follow up relentlessly. Keep records of every call, email, and submission. Send documents via certified mail or fax with confirmation. Don’t assume “no news” means your application is being processed — call to confirm.
Don’t pay for help you can get for free. Legitimate government programs and HUD counseling are always free. If someone asks for money upfront to “stop your foreclosure,” it’s a scam.

If this feels overwhelming, you don’t have to figure it out alone. You can find free, legitimate foreclosure help (including HUD counselors and state programs) here:
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Frequently Asked Questions

What government programs are available to stop foreclosure in 2026?

The main government programs to stop foreclosure in 2026 include the Homeowner Assistance Fund (HAF), FHA loss mitigation options, VA home loan assistance, USDA Rural Development loan programs, HUD housing counseling, state-specific mortgage assistance programs, and the Fannie Mae/Freddie Mac Flex Modification program. Each targets different loan types and situations, so many homeowners qualify for more than one.

Can I qualify for the Homeowner Assistance Fund if I’m already in foreclosure?

Yes, in most states. The HAF was designed to help homeowners who are behind on their mortgage — including those already in the foreclosure process. Some states will even pay your mortgage reinstatement amount directly to your servicer to bring your loan current and stop the foreclosure. However, the further along you are in the process, the more urgency there is to apply. Don’t wait.

Do I need to have a government-backed loan to get help?

No. While some programs (like FHA loss mitigation and VA assistance) are specific to those loan types, other programs help homeowners regardless of loan type. The Homeowner Assistance Fund covers conventional, FHA, VA, USDA, and even non-traditional mortgage products. HUD-approved counselors can help any homeowner for free. And state-level programs often don’t restrict assistance based on loan type.

How long does it take to get approved for government foreclosure assistance?

Timelines vary by program. HAF applications can take 2 to 8 weeks depending on your state and how complete your application is. FHA loss mitigation evaluation typically takes 30 to 90 days. VA loan assistance can sometimes be arranged in 2 to 4 weeks. The key is applying early — if you wait until your auction date is a month away, there may not be enough time. A HUD-approved counselor can help expedite the process.

Is government foreclosure assistance really free?

Yes. All of the programs listed in this article — HAF, FHA loss mitigation, VA assistance, USDA programs, HUD counseling, and Flex Modification — are completely free to apply for and use. HUD-approved housing counselors are funded by the government and charge nothing for foreclosure prevention counseling. If anyone asks you for upfront fees to help you access these programs, walk away — it’s a scam. The only people who should charge you are licensed attorneys providing legal representation, and even then, many legal aid organizations offer free foreclosure defense.

The Bottom Line

Losing your home to foreclosure is not inevitable — even if it feels that way right now. Government programs to stop foreclosure exist because lawmakers and agencies understand that keeping families in their homes is better for everyone: better for you, better for your community, and better for the economy.

But these programs can’t help you if you don’t apply. And the single biggest reason homeowners lose their homes isn’t that help wasn’t available — it’s that they waited too long to ask for it.

Start today. Call a HUD-approved housing counselor at 1-800-569-4287 or visit hud.gov/counseling. Explore your state-specific resources. And apply for every program you might qualify for — simultaneously, not sequentially.

You still have options. You still have time. But only if you act now.

If you’re ready to take the next step, you can get connected with foreclosure assistance resources here: Get Help Now

Disclaimer: The information on ForeclosureShield.com is for educational purposes only and does not constitute legal, financial, or tax advice. Government program availability, eligibility requirements, and funding levels are subject to change. Information is current as of early 2026 but may not reflect recent changes to your state’s programs. Consult a HUD-approved housing counselor at 1-800-569-4287, a licensed attorney, or a financial advisor for guidance specific to your situation. ForeclosureShield.com is not affiliated with or endorsed by HUD, the FHA, the VA, or any government agency.

7 Government Programs That Can Help You Keep Your Home

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