Foreclosure Assistance Grants for Seniors: What Exists and What Works

The truth about foreclosure assistance grants for seniors

Search results for “foreclosure grants” often promise free government money for anyone over 62. That is not how it works. The federal government does not offer a standing grant that pays a senior’s overdue mortgage. What does exist falls into four groups:

• Loan relief, not cash. Servicers can spread missed payments over time, add them to the end of the loan, or change the loan terms. For FHA and VA loans, a “partial claim” puts the arrears into a zero-interest second lien you repay when you sell or refinance. That works much like a grant while you live in the home.
• Local one-time help. Some cities, counties, Area Agencies on Aging, and charities such as Catholic Charities or the Salvation Army offer small one-time payments. These are usually limited, and many can only help if the payment brings the loan current.
• Tax relief. For many older owners with no mortgage, the real threat is a property tax foreclosure. State and county exemptions and deferrals can stop that.
• Legal protection. Lawyers can find errors in a foreclosure, use state mediation programs, and stop sales that break the rules.

Knowing this saves time. Instead of searching for a grant that may not exist, call the people who can unlock the help that does.

After the Homeowner Assistance Fund

The Homeowner Assistance Fund was the closest thing to a true foreclosure grant in recent years. It paid mortgage arrears, property taxes, and other housing costs for homeowners hurt by the pandemic, and many older homeowners used it. Treasury says the program’s period of performance ended September 30, 2026, so state HAF programs can no longer pay out. Most states had closed applications well before that.

If a website or caller says they can still get you HAF money, treat it as a scam. A few states and cities fund their own small homeowner programs from local budgets. A HUD-approved counselor or 211 will know if one operates where you live. Our mortgage relief programs guide walks through what replaced HAF for each loan type.

Your first call: a HUD-approved counselor

HUD-approved housing counseling agencies help homeowners avoid foreclosure at no charge. Find one through HUD’s counselor search or by calling 800-569-4287. Many agencies have staff trained in reverse mortgages and in working with older adults on fixed incomes.

A counselor can:

• Read your notices and tell you how much time you really have.
• Build a budget around Social Security, pensions, and other income.
• Fill out and send the servicer’s hardship application for you.
• Follow up when the servicer loses papers or misses deadlines.
• Point you to local grants, tax relief, and legal aid that you may not find on your own.

Bring your most recent mortgage statement, any letters from the servicer or court, proof of income (benefit letters, pension statements), and your property tax and insurance bills.

Relief your servicer must consider

Federal mortgage servicing rules give every borrower some protection, whatever their age. Under the CFPB’s rules, most servicers cannot make the first foreclosure filing until you are more than 120 days behind. If you send a complete application for help (called loss mitigation) at least 37 days before a scheduled sale, the servicer must review it before going ahead. The CFPB explains these rights in plain language in does my servicer have to help me avoid foreclosure.

Depending on your loan, common options include a repayment plan, forbearance, a loan modification, a partial claim (FHA and VA), or a short sale or deed in lieu if keeping the home is not realistic. Veterans have added VA tools, explained in our foreclosure assistance for veterans guide.

Reverse mortgage foreclosure and HECM protections

A reverse mortgage has no monthly loan payment, but it can still end in foreclosure. Most reverse mortgages are FHA-insured Home Equity Conversion Mortgages (HECMs). Under a HECM, you must keep paying property taxes, homeowners insurance, and any HOA fees, live in the home as your main residence, and keep it in reasonable repair. The CFPB’s reverse mortgage guide lists these duties. Falling behind on taxes or insurance, called a property charge default, is the most common reason HECM borrowers face foreclosure.

HUD has added protections for these defaults. A practice guide from the National Center on Law and Elder Rights, funded by the federal Administration for Community Living, summarizes them from HUD Mortgagee Letter 2023-23 and the FHA servicing guide:

• Repayment plans for property charges. HUD dropped its ban on back-to-back repayment plans for larger arrears, and servicers may include HOA and condo fees in a plan.
• Small arrears. Servicers have flexibility to work with borrowers who are less than $5,000 behind on property charges without calling the loan due.
• At-risk extension. A servicer can delay foreclosure when the borrower in default is over 80 and the borrower or another household member has a critical health circumstance. Since April 29, 2024, the extension can stay in place as long as the borrower lives in the home, with no yearly renewal.
• Cash for keys. If keeping the home is not possible, servicers can offer up to $7,500, plus up to $5,000 for probate costs in some cases, to borrowers or heirs who complete a deed in lieu or short sale.

The full details are in the NCLER practice tip on HECM protections. To ask for an at-risk extension, contact the servicer in writing and include a doctor’s letter describing the health condition. A HUD-approved counselor with HECM training can help. Also return your annual occupancy certification on time; a missed form can trigger a default by itself.

If you are a surviving spouse who was not on the loan, ask the servicer right away about non-borrowing spouse protections, which may let you stay in the home. HUD’s HECM program page is the official reference.

When property taxes cause the foreclosure

Many seniors own their homes free and clear, so their risk is a tax foreclosure by the county, not a bank. Tax foreclosure timelines and redemption rights differ a great deal by state, and some move quickly. Every state offers some kind of property tax break for older or disabled homeowners. Common types are homestead exemptions, assessment freezes, circuit-breaker credits, and deferrals that let the tax wait until the home is sold.

Two practical points: many of these programs require a yearly application, and some can be applied to past-due years or used to set up a payment plan. Call your county treasurer or tax collector and ask, “What senior programs or payment plans can stop this tax sale?” Our senior property tax relief guide explains each type and how to apply.

Options by situation

Free legal help for older homeowners

If you have received court papers or a sale date, talk to a lawyer as soon as you can. Legal aid groups funded by the Legal Services Corporation handle foreclosures for people with low incomes. Separately, the Older Americans Act funds legal services for people 60 and older in every state, often without strict income limits. Find them through the Eldercare Locator or by calling 1-800-677-1116.

A lawyer can check whether the servicer followed the rules, raise defenses, request state foreclosure mediation where it exists, and spot deed or title problems. That matters for older homeowners whose home is in a late spouse’s name, since probate or heirship issues can block a modification until they are fixed.

Freeing up monthly income

A modification works only if the new payment fits your budget. Many older homeowners leave benefits unclaimed that could free up money for housing. Check for:

• Medicare Savings Programs and Extra Help, which can cut health costs by hundreds of dollars a month.
• SNAP food benefits, which older adults often qualify for but never apply for.
• LIHEAP energy help, with income caps at 150% of the poverty level or 60% of state median income.
• SSI if your income and savings are very low.

NCOA’s free BenefitsCheckUp screens for these in one place. Applying for government benefits is always free.

How do I spot a foreclosure rescue scam?

Older homeowners with equity are frequent targets. Warning signs include upfront fees, promises to “stop the foreclosure” for certain, instructions to stop talking to your servicer, requests to send payments to someone other than your servicer, and any request to sign over your deed. The CFPB’s guide to foreclosure relief scams lists more. Real HUD-approved counselors do not charge for foreclosure help. If a stranger calls offering a grant, hang up and call your counselor instead.

A two-week action plan

1. Day 1: open every letter and find any sale or court date. Call 800-569-4287 for a HUD-approved counselor.
2. Days 1 to 3: if there is a court case or sale date, call legal aid or the Eldercare Locator the same day.
3. Days 2 to 5: gather statements, benefit letters, tax and insurance bills, and a simple monthly budget.
4. Days 5 to 10: with the counselor, send a complete hardship application to the servicer and keep proof you sent it.
5. Days 5 to 10: for taxes, call the county treasurer about senior relief or a payment plan.
6. Days 10 to 14: run BenefitsCheckUp, and ask the counselor about any local one-time grants.
7. After that: answer every servicer request quickly and keep making any payment you can.

Related guides

• Mortgage relief programs
• Senior property tax relief
• Foreclosure assistance for veterans
• Debt forgiveness programs for senior citizens

Frequently asked questions

This guide is general information, not legal or financial advice. Foreclosure timelines and rules vary by state and loan type. National Relief Program is an independent website and is not affiliated with HUD, Treasury, or any government agency.