Protect Your Home from Foreclosure
As a Member-owned and Member-driven financial institution, FEW FCU is committed to helping you find financial solutions in today's economic environment.
If you are faced with a challenging situation where you are unable to meet your mortgage obligation, we suggest you contact your lender immediately. The sooner you do, the easier it will be to find a workable solution to avoid foreclosure and its damaging effects on your credit rating and future borrowing potential. After your individual situation has been evaluated, you can gain useful information about your possible options.
Whether your loan is with FEW FCU or another financial institution, most lenders would rather work with you to keep your house than go through the costly foreclosure process. Keep in mind, however, that avoiding loan delinquency and default is your responsibility and the lender is under no obligation to offer potential remedies.
- 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 permanently change the terms of the mortgage to make payments more affordable. For example, the lender may provide an extension to the number of years on the loan, or change an adjustable interest rate to a fixed interest rate.
- 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.
To ensure your lender can give your request a fair evaluation, it is important that you have copies of the following documents:
- Two 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
- If you have a FEW FCU mortgage, call 213.327.2093
- If your mortgage is with another lender, please contact them directly.