HOMEOWNER HARDSHIP ASSISTANCE
Interactive Options to Avoid Foreclosure
Explore Know Your Options an interactive video simulation from Fannie Mae to help you learn about your options to avoid foreclosure. Play the part of homeowner struggling to avoid foreclosure, make decisions, and experience the outcomes - good and bad - to learn lessons along the way.
As your credit union, we are aware that current economic conditions have created a challenging situation for many individuals and families to meet their financial obligations. If you are facing difficulties making your mortgage payments, our recommendation is to take immediate action and call your lender or a certified housing counselor (see contact details below).
The quicker you take action, the more options you will have to avoid the start of a foreclosure on your property. Simply, the longer you wait the more difficult and expensive the process is to stop. A formal foreclosure will damage your credit rating, and your ability to borrow money in the future will be negatively impacted.
Whether your loan is with SchoolsFirst FCU or another institution, most lenders would rather work with you to keep your house than go through the costly foreclosure process. Please remember, however, your lender is under no obligation to offer or accept a workout. When you are delinquent on the loan, the default is your responsibility and the lender has the decision whether to offer potential remedies.
Options that may be available to you based on your lender’s evaluation and your individual situation include:
- Repayment Plan: The lender may accept an agreement to help you get current with missed mortgage payments by creating a schedule for repaying the past-due amounts.
- Loan Modification: The lender may present an option to temporarily change the terms of the mortgage to make payments more affordable. Example actions include an extension to the number of years on the loan, or change the rate to lower your payment during your hardship.
- Forbearance: The lender may allow reduced or suspended payments for a short period of time, after which another option will be agreed upon to bring the loan current. A forbearance option is often combined with a repayment plan or modification to bring the account current at a specific time.
- Short Sale: If affording a home is no longer an option, then a short sale can be an option. A short sale would allow you to sell your home even if the mortgage balance exceeds the value of the home.
Contact us and we will guide you through the process and help you determine which option is best for you.
Financial documents you will need available for discussion with your lender include:
- Most recent pay stubs
- Most recent W-2 tax statement
- Most recent bank statement
- A written statement explaining your financial hardship
- A written financial statement detailing your income and expenses
The most important step is to get help as early as possible. Remember, doing nothing will cause the greatest setback.
Who to Call
- If your mortgage lender is SchoolsFirst FCU: 800.462.8328, ext. 8723
- If your mortgage lender is another institution: Contact your lender directly
- For counseling from a HUD (Housing and Urban Development) certified housing counselor: 800.569.4287.
Above all, we are here to help. If you need additional information or guidance after you have tried contacting your lender or the recommended HUD-certified counselor, contact SchoolsFirst FCU at 800.462.8328.