As your Financial Partner for Life, we know that today’s economic climate can be challenging for some of our valued members—including meeting all of their financial obligations.
If you find that you are affected by the current economy and are having trouble meeting your financial obligations, including keeping up with your mortgage payments, below is information designed to help you avoid foreclosure on your home.
- Don’t ignore letters or phone calls you receive from your lender
- Contact your lender immediately to explain your situation—most lenders will want to work with you to avoid foreclosure
- Seek credit counseling from a HUD-approved Housing Counseling Agency
- Explore foreclosure prevention options with your lender
When you speak with your lender about preventing foreclosure, there are several options that may be available based on your lender’s evaluation of your individual situation including:
- 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 offer an option to change the terms of the mortgage to make payments more affordable.
- 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.
Important note: most lenders will want to work with you to make some type of financial arrangement to help keep you in your home and to avoid foreclosure. However, lenders are not required to offer any type of workout plan; including loan modifications, forbearance or repayment plans.