If you’re having difficulty making your mortgage payments on a
conventional home loan, you have several options available.*
If your loan is past due for one, two or three payments because of a
temporary financial setback, you may qualify for a repayment plan. You
must be able to make the monthly loan payment and pay an additional
amount toward the past due amount each month until the loan is brought
If you can’t make a loan payment or you’re more than four payments
behind on your loan, you may qualify for a forbearance agreement. This
formal repayment plan may extend more than three months. You’ll need to
complete a Financial Analysis Form and send us copies of your last two
pay stubs to verify your income.
If you can’t pay your past due loan payments, but you can meet your
monthly obligations, we may be able to modify your loan by adding the
delinquent interest and delinquent escrow payments to your loan balance
to bring your loan current. Your current mortgage interest rate must be
within market guidelines. If you have any additional liens against your
property, the lien holders must be willing to subordinate their interest
to the new loan amount. You’ll need to complete a Financial Analysis Form
and send us copies of your last two pay stubs to verify your income.
Home Affordable Modification Program (HAMP)
This alternative is similar to the loan modification mentioned above. The delinquent interest and escrow payments will be added to the loan balance to bring your loan current. With the HAMP, the terms of your loan are modified to make your mortgage payment more affordable. You will need to complete a financial analysis form and send us copies of the last two pay stubs for all borrowers on the loan to verify income.
If you wish to sell your property, but the net proceeds from the sale
won’t pay off your loan and you can’t afford to pay the shortage, the
investor may allow you to sell your home without paying the entire amount
due. You’ll need to complete a Financial Analysis Form and send us a
letter requesting a short sale.
Deed in lieu (DIL) of foreclosure
If you don’t qualify for any of the previous alternatives and you don’t
have any additional liens against your property, you may be able to deed
the property directly to the investor to avoid foreclosure. You’ll need
to complete a Financial Analysis Form and send us a letter requesting a
*Important: There may be additional qualifications not mentioned here
due to space limitations. Please contact our Default Department at
1-866-350-8884 for more details.