When you can't pay both your electricity bill and your mortgage, you face two immediate threats: utility shutoff and mortgage default. You must act quickly, contacting your utility provider and mortgage servicer without delay to prevent service interruption or foreclosure.
Based on federal consumer protection law and HUD/CFPB public guidance · Last reviewed July 2026
The Direct Answer
Immediately contact your utility company to discuss payment plans, disconnection protections, or energy assistance programs like LIHEAP. Concurrently, reach out to your mortgage servicer to explore options such as forbearance, loan modification, or the Homeowner Assistance Fund (HAF).
Do not ignore shutoff notices or default warnings. Prioritize communication and seek housing counseling from a HUD-approved agency to understand all your rights and options.
Watch out for scams. Never pay a fee to get help with your mortgage or utility bills. Legitimate assistance is free. Do not share personal financial information with unsolicited offers.
Stop Utility Shutoff: Contact Your Provider Immediately
A shutoff notice means you have a limited window to act. Do not wait for service to be disconnected. Call your utility company the moment you receive a notice or realize you cannot pay.
What to Ask For:
Payment Plans: Many utilities offer deferred payment arrangements, allowing you to pay your overdue balance in installments over several months.
Budget Billing: This can stabilize your monthly payments by averaging your energy use over a year, preventing seasonal spikes.
Energy Assistance Programs: Ask if they can direct you to local or state programs. The Low Income Home Energy Assistance Program (LIHEAP) is a federal program that provides grants to help eligible households pay heating and cooling bills. Your utility company can often tell you how to apply or provide contact information for the administering agency in your area.
Medical Protections: If someone in your household has a serious medical condition, inquire about special protections against shutoff. You may need a doctor's note.
Emergency Moratoriums: Some states or cities have rules preventing shutoffs during extreme weather or for specific populations. Ask if any apply.
Address Mortgage Default: Talk to Your Servicer Now
Missing even one mortgage payment can trigger fees and impact your credit. Two or more missed payments put you at risk of foreclosure. Your mortgage servicer is the company you send your payments to; they are your first point of contact.
Your Options with the Servicer:
Forbearance: This allows you to pause or reduce your mortgage payments for a set period. Payments are not forgiven; they are deferred and must be repaid later, often by adding them to the end of your loan or in a lump sum.
Loan Modification: This involves changing the terms of your loan, such as the interest rate, loan term, or principal balance, to make payments more affordable. This is a longer process.
Homeowner Assistance Fund (HAF): This federal program provides funds to states to help homeowners struggling with mortgage payments, utility costs, property taxes, and other housing-related expenses due to economic hardship. Ask your servicer if they participate, or contact your state housing finance agency.
Reinstatement or Repayment Plan: If you can catch up quickly, a servicer might offer a plan to pay the overdue amount over a few months.
Do not wait for a Notice of Default. Proactive communication improves your chances of finding a solution.
A HUD-approved housing counseling agency offers free, unbiased advice. These counselors are trained to help homeowners facing financial distress. They can explain your options, help you organize your documents, and even act as an intermediary with your mortgage servicer or utility company.
How a Counselor Can Help:
Assess Your Situation: They will review your income, expenses, and debt to help you create a realistic budget.
Explain Programs: Counselors can clarify federal, state, and local assistance programs you may qualify for, including LIHEAP and HAF.
Prepare Documents: They can help you gather the necessary paperwork for loan modifications or assistance applications.
Negotiate: In some cases, a counselor can help you communicate with your mortgage servicer or utility company to reach an agreement.
These services are free, and calling one is a concrete step you can take today to protect your home and finances. You can find a HUD-approved counselor by searching the CFPB's website or calling HUD directly.
Understanding Protections Against Shutoff and Foreclosure
Both utilities and mortgage lenders must follow specific rules before taking action. Knowing these rules can give you a bit more time to find a solution.
Utility Shutoff Rules:
Utility companies are generally required to provide written notice before disconnecting service. The exact notice period, as well as any special protections for vulnerable populations (e.g., elderly, medically frail, or during extreme weather), are determined by state law and your state's Public Utility Commission (PUC) or equivalent regulatory body. Contact your state PUC to understand the specific rules in your area.
Mortgage Foreclosure Protections:
Federal law (12 C.F.R. §1024.41) requires mortgage servicers to wait until you are more than 120 days delinquent before making the first formal foreclosure notice. This gives you time to submit a complete application for loss mitigation options. If you apply for a loan modification or other help, the servicer cannot proceed with foreclosure while your application is under review. The CFPB handles complaints if you believe your servicer has violated these rules.
Get Help with Utility Bills & Mortgage Payments
Don't wait. Contact your utility company and mortgage servicer today. A HUD-approved housing counselor can also help you develop a plan.
Can my utility company shut off power if I have a medical condition?
Many states and utility companies offer temporary protections against shutoff for customers with serious medical conditions. You typically need to provide a doctor's note or medical certificate confirming the condition and that a shutoff would be life-threatening or worsen the condition. These protections are often temporary, requiring you to still work towards a payment plan.
What is the Homeowner Assistance Fund (HAF)?
The Homeowner Assistance Fund (HAF) is a federal program established under the American Rescue Plan Act of 2021. It provides money to states, territories, and tribes to help homeowners with expenses like mortgage payments, utility bills, property taxes, and homeowner's insurance. Each state runs its own HAF program, so eligibility and application processes vary. Contact your state's housing finance agency for details.
What is mortgage forbearance?
Mortgage forbearance is a temporary agreement with your mortgage servicer that allows you to pause or reduce your monthly mortgage payments for a set period. Payments are not forgiven; they are deferred. At the end of the forbearance period, you will need to repay the missed amounts, either in a lump sum, through a repayment plan, or by adding them to the end of your loan.
Should I file for bankruptcy to stop a utility shutoff or foreclosure?
Filing for bankruptcy (Chapter 7 or 13) can trigger an "automatic stay" (11 U.S.C. §362), which temporarily stops most collection actions, including utility shutoffs and foreclosure proceedings. However, bankruptcy is a serious legal step with long-term financial consequences. You should consult a qualified bankruptcy attorney to understand if it's the right choice for your specific situation.