Understanding Home Loan Payment Assistance (Loss Mitigation)
During home ownership, increased expenses or changes in your family income may make it difficult to pay your bills including your monthly home loan payments. Your home loan payments should always be kept current. However, if you cannot continue to make your home loan payments for reasons beyond your control, please contact us to discuss loss mitigation options.
Please watch this informative video for a brief overview of payment assistance options.
Where do I start?
Initiate your Request
Please contact us at 1-866-397-5370 or use our simple and convenient Loan Solution Center to submit your request for home loan payment assistance.
We strongly encourage utilizing our Loan Solution Center to avoid long phone hold times!
What type of home loan payment assistance is available?
If your payment difficulties are temporary, you may qualify for one of the following options:
- Reinstatement - This is the payment of the total amount due in a lump sum by a specific date.
- Forbearance plan - This allows you to reduce or suspend payments for a short time and then bring your loan current. A forbearance plan may be combined with a reinstatement when you know that you will have enough funds to bring your loan current at a later date, such as a tax refund, insurance settlement, or investment reaching maturity.
- Repayment plan - This is an agreement to resume making your regular monthly payments plus a portion of the past due amount each month until you bring your loan current.
If your payment problem is long-term or it is not likely that you will be able to bring your loan current at any time, other options may be appropriate including the following:
- Modification - If you are able to make some monthly payment but are unable to bring your loan current, a modification changes the terms of your loan permanently to make the monthly payments more affordable. These changes may include one of more of the following: adding the missed payments to the loan balance, reducing the interest rate or extending the term of your loan.
- Sale of property - The property is put on the market and the mortgage loan is paid off from the proceeds at closing. In a "short-sale" situation, the lender accepts less than the total amount due and still considers the loan paid-in-full.
- Deed-in-lieu of foreclosure - Foreclosure is a legal process by which a lender takes ownership of your home if you do not make the mortgage payments. With a "deed-in-lieu" the lender accepts a transfer of the title to your home instead of foreclosure.
Please call our Loss Mitigation Department toll-free at 1-866-397-5370. A member of our staff will conduct an interview to determine your circumstances and explore options that may be available to you. Please do not delay - the sooner that you call, the more likely we can find an alternative for you. In order to begin the review process, please have the following information available and ready when you call:
- Your home loan account number
- A brief explanation of your financial circumstances
- Your recent income documents including pay stubs and benefit statements from Social Security, disability, unemployment, retirement, or public assistance
- Your tax returns from the previous two years
- A detailed listing of your monthly household expenses
The U.S. Department of Housing and Urban Development ("HUD") sponsors housing counseling agencies throughout the country that provide advice and guidance regarding mortgage loan defaults, foreclosures, credit issues and foreclosure alternatives. You can find a HUD counselor in your area by visiting the HUD Website or by calling HUD toll-free at 1-800-569-4287.
NOTE: THIS IS AN ATTEMPT TO COLLECT A DEBT AND ANY INFORMATION OBTAINED DURING A CALL WILL BE USED FOR THAT PURPOSE. IF YOU ARE CURRENTLY PROTECTED BY THE FILING OF A PETITION IN BANKRUPTCY OR HAVE BEEN DISCHARGED IN BANKRUPTCY, THIS SUMMARY IS FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE CONSIDERED AS AN ATTEMPT TO COLLECT THE DEBT.
Frequently Asked Questions:
Will there be a charge to get help
- No. There should never be a fee to obtain assistance or information about foreclosure prevention options from your mortgage servicer.
- Never send a home loan payment to a company other than the one listed on your monthly mortgage statement.
- Beware of scams and anyone offering to help you for a fee.
When can I speak with a home preservation specialist?
Home preservation specialists are available Monday – Friday, 9 am to 5 pm CST.
What is a Forbearance Agreement?
Temporary Hardship typically results in a forbearance or repayment plan. Here's what you need to know about both programs and how they help you get through a temporary hardship.
How does a forbearance work?
A forbearance plan reduces or suspends the amount of your regular home loan mortgage payment if a life event is expected to decrease your cash-on-hand soon. More often, it is used in times of temporary hardship, like unemployment.
How does this benefit you?
For a specific period, a forbearance plan can provide short-term home loan payment relief until you're in a better financial situation.
- You must contact us on a monthly basis to provide regular updates on your financial status.
- At the end of the forbearance period, the payment amounts that were suspended or reduced during the forbearance period accrue and are expected to be paid current. At that time, we'll work with you and review your financial situation to see if you're able to repay the forbearance amount, or if a long-term option like a loan modification is available to you.
Will my credit be affected during a forbearance?
Loans that are in forbearance with missed payments will NOT be reported to credit bureaus. Borrowers that do make their regular payments will be reported regularly.
How does a repayment plan work?
- Missed payments are divided into manageable amounts and spread out over time.
- By catching up as soon as possible, you keep a temporary problem from having longer-term effects.
- It may be less damaging to your credit score than a foreclosure sale.
During the repayment period, your payments may be much higher than your regular payment amount. We'll need to make sure your income can support those payments before starting your plan.
Permanent (long term) Hardship typically results in a loan modification. Here’s what you need to know about a loan modification and how it can help you get through a permanent (long term) hardship.
What happens after the Forbearance Period has expired?
The suspended payments will be due in full. If you recover and can afford to pay your payments as agreed, thank you! If you are unable to pay your payments and need more time or other alternatives, please contact us at 1-866-397-5370 or visit our Loan Solution Center to request additional assistance.