If you cannot repay your home loan after purchase, prioritize immediate communication with your mortgage lender. Options include negotiating a temporary forbearance, loan modification to reduce payments, or a short sale to sell the property and settle the debt. If these fail, consider bankruptcy protection under Chapter 13 to restructure payments. Proactively addressing the issue can prevent foreclosure and mitigate credit damage.

Lenders and federal programs encourage proactive engagement to avoid foreclosure. The Consumer Financial Protection Bureau (CFPB) reports that 1.2 million homeowners sought forbearance in 2023, with 78% of applications approved. Loan modifications reduced monthly payments by an average of 30% in 2022, per the U.S. Department of Housing and Urban Development (HUD). Short sales saved 650,000 properties from foreclosure in 2021, according to the National Association of Realtors (NAR). Bankruptcy filings related to mortgages dropped 15% in 2022, reflecting successful alternatives. These data highlight the effectiveness of early intervention and structured solutions in preserving homeownership and creditworthiness. Foreclosure costs, including legal fees and reduced property value, average $15,000 per case, making avoidance critical. Government programs like the Homeowner’s Hardest Hit Fund provided $1.5 billion in 2023 to assist struggling borrowers. Timely action, supported by data-driven strategies, significantly improves outcomes for delinquent homeowners.