Has Your Home Been Affected By Hurricane Michael?

  1. If you have been affected by the storm and you need mortgage or homeowner’s insurance assistance, call us at 1-800-365-7107 (for insurance help, select Option 5).
  2. If you need to apply for federal disaster relief, call the FEMA Helpline to register at 1-800-621-3362 / TTY 1-800-462-7585; or visit www.DisasterAssistance.gov to see if you qualify for Individual Disaster Assistance. For step-by-step instructions on filing a FEMA disaster claim—and how to work with your insurance company and their adjusters—visit www.fema.gov/nfip-file-your-claim.

Mounting debt, the loss of a job, health issues, marital changes and any other number of reasons can leave a homeowner faced with difficulty making mortgage payments.

Whether you've missed one payment or multiple payments, now is the time to act. If you’ve missed payments and find yourself buried under late fees and past-due amounts, you may qualify for a temporary (or permanent) solution to help you get your finances back on track and avoid foreclosure. Or you may be able to modify your mortgage loan, which could lower your payments and make them more affordable.


Avoiding Foreclosure: Know Your Options

When payment difficulties arise, some homeowners consider foreclosure. But when you consider the long-term financial, credit, and tax implications of foreclosure, it may not be your best solution.

Alternative payment programs may be available to help you avoid foreclosure. Our mission is to do everything we can to keep you in your home. Our objective is to work with you to find the solution that works best for you.

If you find it difficult to pay your mortgage, please contact us right away. The sooner you contact us, the sooner we can help. Our Customer Care team will refer you to a specialist who will carefully review your unique situation to help find a solution for you. The process is called Loss Mitigation Review.

The basic steps of the Loss Mitigation Review are:

  • Initial review — If you're having difficulty making your mortgage payments, call us right away. When you call, be ready with your loan number, the monthly pre-tax income of each homeowner, and details about your financial hardship.
  • Document collection and review — If our initial review of your situation determines that you could be eligible for loss mitigation, we'll send you a package requesting the documents we need to complete your evaluation. Be sure to fill in, sign, and return the package as soon as possible. If we don't receive your document package by the requested date, we won't be able to review your loan. Start collecting your documents now by clicking here.
  • Evaluation notice — The evaluation notice concludes your Loss Mitigation Review. It's a letter that describes which—if any—loss mitigation options you may be eligible for.

This table above serves as a quick overview of your potential loss-mitigation options.

Here is more information about foreclosure alternatives that could be available to you: 

Forbearance

An opportunity to temporarily suspend or reduce your monthly mortgage payments for a specific time period. A forbearance:

  • Gives you time to improve your finances and get back on your feet
  • Is less damaging to your credit score than a foreclosure
  • Enables you to stay in your home and avoid foreclosure.

Repayment Plan

An agreement with with us that lets you pay the past-due amount—added on to your current mortgage payment—over a specific time period to help you bring your mortgage current. A repayment plan:

  • Resolves your delinquency
  • Catches you up on your past-due payments over an extended time period
  • Is less damaging to your credit score than a foreclosure
  • Enables you to stay in your home and avoid foreclosure.

Loan Modification

An agreement between you and your investor (the actual owner of your mortgage) to change the original terms of your loan—such as the payment amount, the length of the loan, the interest rate, etc. A loan modification:

  • Features a trial payment plan before permanently modifying your loan—which helps you make sure you can still afford your payment after the modification
  • May reduce your monthly mortgage payment to lower amount
  • Is less damaging to your credit score than a foreclosure
  • Enables you to stay in your home and avoid foreclosure.


Other Options

If you’re struggling to make your mortgage payments, you’re facing tough choices—do you stay in a house you may no longer be able to afford, or should you explore other options? While it may be difficult to consider giving up your house, it may be the best choice for you. Such options include:

  • Short sale. In a short sale, your home is sold for less than the balance remaining on your mortgage. If your investor agrees to a short sale, you can sell your home and pay off all (or some of) your mortgage balance with the proceeds. A short sale can help you:
    • Eliminate or reduce your mortgage debt
    • Take advantage of possible relocation assistance
    • Start repairing your credit sooner than if you go through foreclosure
    • Possibly obtain a Fannie Mae mortgage sooner (in as little as two years) than if you go through foreclosure (up to seven years).
  • Mortgage release (or, deed-in-lieu). With a mortgage release (also called a deed-in-lieu of foreclosure, or simply deed-in-lieu), you transfer the ownership of your house to the owner of your mortgage in exchange for a release from your loan and payments. A deed-in-lieu can help you:
    • Eliminate your mortgage debt
    • Take advantage of possible relocation assistance
    • Start repairing your credit sooner than if you go through foreclosure
    • Possibly obtain a Fannie Mae mortgage sooner (in as little as two years) than if you went through foreclosure (up to seven years)
    • Decide when to leave your house—you can vacate immediately, stay for up to three months (without paying rent), or lease the house for up to one year.

HUD-approved counseling

You can talk for free with an unbiased housing counselor. The program is sponsored by the U.S. Department of Housing and Urban Development (HUD), and gives you no-charge access to HUD-certified housing counselors. If you’re having trouble paying your mortgage or you’ve already gotten a delinquency notice, call 1-888-995-HOPE. This national hotline—open 24/7—is operated by the Homeownership Preservation Foundation, a nonprofit member of the HOPE NOW Alliance of mortgage industry members and HUD-certified counseling agencies. For free online guidance, visit www.hopenow.com.

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