I study the effect of foreclosure delays on labor income and employment outcomes, exploiting a temporary CFPB rule that restricted servicers from initiating foreclosures. Using detailed employee-employer matched administrative data linked with individual credit profiles in the U.S., I employ a difference-in-differences design and compare borrowers who were 120+ days delinquent one month before versus one month after the cut-off eligibility date of the rule. I estimate a 2.5 percent increase in income for borrowers eligible for up to four months of foreclosure delays. The higher income is attributed to an increased probability of switching employers within labor markets with abundant job opportunities. Temporary liquidity and time to avoid costly foreclosure explain my findings. Furthermore, these delays lead to a persistent decrease in the probability of default and foreclosure over the year following the policy. Overall, my research suggests temporary delays, when implemented during the early stages of the foreclosure process, can empower borrowers to achieve financial stability by fundamentally reshaping their income prospects through the labor markets.