Homeowner Assistance

assistance-family

Keys to Preserving Homeownership

  • Take action now as more options may be available when you ask for assistance early.

  • Contact your lender or counselor to answer your questions.

  • Ask what options may be available for you because each situation is unique.

  • Beware of foreclosure rescue scams.

  • Note that all loss mitigation options are not available with every lender, servicer or investor.

Loss Mitigation Options If You Desire to Stay In Your Home

Keeping up with payments can be difficult, especially with circumstances like job loss, decreasing home values, or overextended credit.   By reaching out to lenders and mortgage servicers when challenges first arise, you keep more options open.   Here are some options that may allow you to keep your home:

  How does it work? Is it for me?
Refinance Switching to a fixed rate or lowering your monthly payments may help you avoid falling behind later on.

Refinancing may be the best option if you are current on your mortgage payments.

Repayment Plan A repayment plan lets you pay back portions of your overdue amount with your future monthly payments. If you are behind due to a temporary hardship, a repayment plan helps you catch up once your finances are back in order.
Loan Modification A modification lowers your monthly payment by changing the terms of your loan such as interest rate or years allowed for repayment. If a hardship has made it difficult to keep up with mortgage payments, a modification could make them more manageable.

Generally, lenders require the following information and documentation in order to review loss mitigation alternatives:

  • A letter detailing the circumstances surrounding your current financial situation, commonly referred to as a “Hardship Letter.”

  • Disclosure of Financial Information

    • Pay stubs for the past two (2) pay periods.
      note: You also need six (6) months of profit and loss statements if you are self-employed.

    • Tax return and W-2 for the previous year.

    • Bank statements for the past two (2) months.

    • A completed financial analysis worksheet which includes a breakdown of all income, debt, obligations and assets.

Loss Mitigation Options If You Cannot Or Prefer Not to Stay In Your Home

If you are facing a hardship, lenders and servicers will do everything they can to help you stay in your home if that is what you want.   If that isn’t possible, or if you prefer not to keep your home, these options may be available to help you avoid foreclosure:

  How does it work? Is it for me?
Short Sale A short sale lets you sell your home and use the proceeds to pay off your mortgage, even if the sale price is less than what you owe.

A short sale might be the best option if you need to sell your home and it has lost value.

Deed-in-Lieu of Foreclosure A deed-in-lieu of foreclosure lets you transfer ownership to the lender without going through the foreclosure process. If you are facing the prospect of a foreclosure sale, consider a deed-in-lieu as a possible way to avoid it.