Mortgage Assistance Options
If you are having trouble paying your loan, we offer a variety of options to help you avoid foreclosure. These can vary by the investor or mortgage insurer of your loan, but they generally include the following:
Repayment Plan
This involves making payment arrangements over a specific period of time, typically three to six months, that are designed to reinstate a delinquent loan to a current status.
Forbearance Plan
This is a type of payment arrangement where your payment is reduced or suspended on a temporary basis.
Loan Modification
This permanent change to the terms of the original mortgage may include one or more of the following: an interest rate change, extension, or change in payments or loan amount.
Pre-Foreclosure/Short Sale
This option allows a borrower to avoid foreclosure by selling the property for less than the total amount owed.
Deed-in-Lieu of Foreclosure
An option that allows a borrower to voluntarily deed a property to the lender to avoid foreclosure.
Deferral
A deferral allows you to avoid having to pay your suspended mortgage payments all at once, typically by adding a non-interest-bearing balance at the end of your mortgage, repayable either at loan payoff (for example if you sell your home) or at maturity.
Documents We May Require
To be considered for any of these mitigation options, we need recent documentation regarding your current financial circumstances, including your plans for the property, what led you to need assistance, and how you can demonstrate your ability to either maintain payments in the future or show you cannot continue to make mortgage payments.
These documents may include:
- A letter of explanation
- Information about your income, including tax returns, verification forms, and self employment information.
- An application or assistance form which can include information about your debts and other liabilities.
Call Us
If you wish to discuss options to loss mitigation options, call us at 888-745-6426.
HUD Counseling
The US Department of Housing and Urban Development (HUD) also has resources to help you in the event and can refer you to certified housing counseling agencies. For a list of HUD-approved housing counseling agencies that can provide foreclosure prevention information, please contact (HUD) at (800) 569-4287 or www.hud.gov/counseling
Natural Disaster Assistance
A Forbearance may be available to help homeowners who are affected by natural disaster. This type of forbearance suspends payments for three months. Upon request and approval, additional time may be available through an extension at the end of that period. A homeowner’s ability to quality for forbearance may be impacted by prior delinquency.
Homeowners are not required to make any payments during the forbearance plan period. However, we encourage homeowners to make payments – even partial – if they are able to do so. A the end of the forbearance plan, all suspended payments are due. Should a homeowner be unable to make that payment, there may be options such as loan modification or deferral.
Credit Reporting
For any property located in a federally declared disaster area, negative credit reporting is suppressed to all credit reporting agencies for the duration of the forbearance plan. When the forbearance plan expires, negative credit suppression will continue for an additional 90 days. If at the end of the additional 90 days, the homeowner hasn’t become current or worked out a mortgage assistance option, then the negative credit suppression will expire and credit reporting will resume as normal.
Foreclosure Impacts
No mortgage will be referred to foreclosure or proceed to foreclosure sale during a forbearance plan provided the homeowner complies with the plan terms.
Periodic Inspections
Periodic inspections of your property may be completed throughout the forbearance period to assess the property condition.
Important Resources
FEMA Disaster Assistance
