Behind on Mortgage Payments? Your 5 Real Options in Indiana

By Dave Scott · 9 min read

A clear breakdown of every option Indiana homeowners have, including the ones lenders rarely mention.

Falling behind on a mortgage is stressful, but you almost always have more options than the panic lets you see. Here are the five real ones for Indiana homeowners, including the ones lenders rarely lead with.

1. Reinstate the loan

If you can pay the past due amount in a lump sum, you can bring the loan current and stop the process. This works when the hardship was temporary, like a short gap in income that has since recovered.

2. Loan modification

Your lender may agree to change the terms of the loan, such as the interest rate or length, to lower the monthly payment. This keeps you in the home but requires qualifying and paperwork, and approval is not guaranteed.

3. Forbearance

A forbearance pauses or reduces payments for a set period while you recover from a hardship. The paused amount still has to be repaid later, so it is a bridge, not an eraser.

4. Sell the house

If keeping the home is not realistic, selling before foreclosure protects your credit and can put cash in your pocket if you have equity. A cash sale is fast enough to beat most auction dates, which is why homeowners in pre-foreclosure often choose it. See how we help you avoid foreclosure.

5. Short sale

If you owe more than the home is worth, the lender may approve a short sale, accepting less than the full balance to avoid the cost of foreclosing. It takes lender cooperation and time, but it can be a graceful exit when you are underwater.

The single most important factor across all five options is time. The earlier you act, the more doors stay open.

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