Financial Hardship Assistance:
Are you in a Financial Assistance Plan now? There are events that cause people to fall behind on their mortgage payments. If you are unable to make your payment, you need to be aware of various options that may be available to assist you in resolving the delinquency on your loan. If you would prefer to discuss this with someone other than your lender, you need to contact HPF (Homeownership Preservation Foundation). HPF is a national nonprofit foreclosure prevention counseling agency. HPF can be contacted at 888-995- HOPE. Your lender is the best source to explain the programs offered. The following overview will give you an idea of what may be available to assist you. If you have the desire to retain homeownership, and the ability to resume monthly payments (currently, or in the near future), one of these programs may be available:
Loan Modification
This option changes the terms of your loan without refinancing and may include adding delinquent payments to the balance of your loan (repaid over the remaining term). Here is how the process works. You will first be pre-qualified for a modification program. Once approved, your lender will complete a modification agreement for your signature. Your monthly statement will then reflect your new due date and modified payment amount. The following documents are required:
- Updated financial information for all parties on the loan
- Verification of income
- Upfront funds may be required in order to complete the loan modification process. This requirement will be determined at the time you are pre-qualified
- A signed and notarized modification agreement will need to be completed. Estimated Timing: The process typically takes 30 days to complete, but may take longer. The primary stages are:
- Financial review and approval - 2-3 weeks
- Document preparation - 2-4 days
- Document signing - 1 week
- Changes to loan record - 1 week
All plan options may require investor/insurer approval. All time durations listed are estimates only and loan modifications are not available with all loan products.
Repayment Special Forbearance Plan:
Your lender, mortgage insurer and investor may agree to delay any foreclosure or other legal action if your promise to repay the delinquent amount over a specified period of time. Here is how the process works. You may be able to delay any foreclosure or other legal action if you promise to repay the delinquency amount over a specified period of time. You will be pre-qualified for a special repayment forbearance plan, and once you are approved, your plan will be monitored by your lender during the repayment period, until the loan is brought current. In the event your loan is transferred to another Servicer, the new Servicer will monitor your Repayment/Forbearance Plan.
The following documents are required:
- Updated financial information for all parties on the loan
- Verification of income
- Any certified upfront funds that may be required
Estimated Timing:
The repayment plan process typically takes 15 to 20 days to complete, but may take longer. The primary stages are:
- Review financial information and determine payment schedule -3-5 days
- Document preparation - 2-4 days V
- Document signing - 1 week V
All plan options may require investor/insurer approval.
All time durations listed are estimates only.
Partial Claim (FHA Customers only):
You may be eligible to receive funds from HUD to bring your loan current.
Here is how the process works. You may be eligible to receive funds to bring your loan current from HUD. This option is available to FHA customers only. Once the lender has received all of the required documents from you, they will submit a request to HUD to advance the funds necessary to bring your loan current.
Documents that are required:
- Updated financial information for all parties on the loan
- Verification of income
- Completed partial claim document
Estimated Timing
The process typically takes 30 to 45 days to complete, but may take longer.
The primary stages are:
- Review of financial information - 2-5 days
- Document preparation - 7-10 days
- Document signing - 7-10 days
- Document Review - I week
- Request to HUD to advance funds - 1 week
All plan options may require investor/insurer approval. All time durations listed are estimates only.
If you are not interested or are unable to retain homeownership, the following programs may be available:
Short Sale:
You may be able to sell your property at its fair market value even if the sale's proceeds are less than what is owed on your loan.
Here is how the process works. This option provides you with an opportunity to sell your home quickly, while attempting to preserve your credit rating. At the close of escrow, if the short sale is approved, the proceeds are wired to your lender.
Documents that are required:
- Updated financial information for all parties on the loan
- Completed short sale documents (i.e. Purchase Agreement, HUD Documents etc.)
- Verification of income
- Interior appraisal
Estimated Timing:
The short sale process typically takes 60 days to complete, but may take longer.
The primary stages are:
- Determination of value -2 weeks
- Negotiation and approval of offer - 2-5 days
- Transaction approval - 2-5 days
- Escrow closing - 2-4 weeks
All plan options may require investor/insurer approval.
All time durations listed are estimates only.
This option may have tax implications. Please check with a financial or tax advisor.
Deed-in-Lieu of Foreclosure:
You may be able to deed the property to the lender/servicer and avoid a lengthy foreclosure. Here is how the process works. You may be able to deed the property to the lender/servicer and avoid a lengthy foreclosure. For information on how this will affect your credit rating, please consult an independent tax advisor. This option relays to the credit bureau that the financial situation was mitigated. If approved, the Deed-in-Lieu documents are forwarded to your lender's attorney's office to complete the process.
Documents that are required :
- Updated financial information for all parties on the loan
- Interior appraisal
- Title Reports, to ensure that the property is free and clear of any liens or encumbrances, and the premises are vacated
- Completed Deed-in-Lieu documents
Estimated Timing:
The process typically takes 75 to 90 days to complete, but may take longer.
The primary stages are:
- Review of financial information - 2-5 days
- Determination of clear title and value - 2-3 weeks
- Transaction approval - 25-30 days
- Document Preparation - 2-5 days
- Document Signing - I week
All plan options may require investor/insurer approval.
All time durations listed are estimates only.
This option may have tax implications. Please check with a financial or tax advisor.
Financial information will be required to determine which alternative will work best for you. The Sooner You Call, the Sooner you can get help.
Have your loan number/Account number ready when you call your lender. If you have a hardship that has affected your financial ability to make your payment, such as unemployment, reduced income, divorce, disability, or illness, a Home Retention Counselor will be able to discuss various programs that may assist you. If you are interested in discussing hardship assistance options, please contact your lender immediately. If you would prefer to discuss this with someone other than your lender, contact HPF (Homeownership Preservation Foundation). HPF is a national nonprofit foreclosure prevention counseling agency. HPF can be contacted at 888-995-HOPE. Foreclosure Consequences: Walking away from your property can carry many long-term consequences. A foreclosure has very serious credit implications. Foreclosures are a matter of public record and are reported to credit reporting agencies in the United States. Once the foreclosure is reported, it becomes a part of your permanent credit file and will remain for up to seven years. Credit reporting will continue, and your loan will be reported as delinquent, until your loan is brought fully current.
