If you’re behind on your mortgage, you’re not alone. Many homeowners across the U.S. and in Illinois are feeling financial pressure from inflation, higher interest rates, and job changes. Missing a payment can feel terrifying — but falling behind does not mean you immediately lose your home.
The key is knowing what happens next and what options you still have.
What Happens When You Miss a Mortgage Payment?
After one missed payment, most lenders simply send a late notice and apply a late fee. Your credit score may dip, but your home is not at risk yet.
After two missed payments, lenders become more aggressive with calls and letters. This is when many homeowners start to feel overwhelmed, but this is also when options still exist.
At about 90 days past due, lenders can begin the foreclosure process. In Illinois, this is called a lis pendens. This is a public notice that the lender has started legal action, but it does not mean you have lost your home. Foreclosure in Illinois often takes many months, which gives homeowners time to take action.
Why Home Equity Is So Important Right Now
Because home values have increased dramatically over the past several years, many homeowners have significant equity even if they are struggling with payments. That equity can be the difference between losing everything and walking away with cash.
In fact, U.S. homeowners collectively hold trillions of dollars in equity. Even if your home value has softened recently, most homeowners who bought more than a few years ago still have substantial equity available.
This is why selling before foreclosure can be a powerful option.
One of my clients changed jobs and fell behind on their mortgage. A lis pendens was filed, but we listed the home before foreclosure could proceed. Thanks to rising home values, they sold the property and walked away with over $200,000 in equity. That money allowed them to move into a rental, pay off debt, and reset their finances.
Your Options If You’re Behind on Your Mortgage
1. Talk to Your Lender Early
Lenders do not want to foreclose if they can avoid it. Many will offer repayment plans, loan modifications, or temporary forbearance to help you catch up. The earlier you reach out, the more flexibility you may have.
2. Sell Your Home to Protect Your Equity
If you have equity, selling your home can pay off your mortgage, stop foreclosure, and leave you with money to relocate and stabilize financially. This is often the best option when catching up on payments isn’t realistic.
3. Use Home Equity Strategically
Some homeowners qualify for cash-out refinancing, HELOCs, or home equity loans. These options can be used to bring a mortgage current or consolidate debt, but they require income, credit, and sufficient equity. Being behind makes approval harder, but it may still be possible with the right lender and strategy.
4. Consider a Short Sale
If you owe more than your home is worth or cannot sell traditionally, a short sale allows you to sell for less than the loan balance with lender approval. This can help avoid foreclosure and reduce long-term damage to your credit.
Don’t Wait Until It’s Too Late
Foreclosure is not immediate — but waiting too long limits your options. Whether it’s working with your lender, selling your home, refinancing, or negotiating a short sale, taking action early gives you the most control over your financial future.
If you’re behind on your mortgage in Illinois and want to understand your options, reach out to a trusted real estate professional who knows how to navigate these situations.
