Loss Mitigation and Exploring Alternatives to Foreclosure

During the course of home ownership, increased expenses or changes in your family income may make it difficult to pay your bills including your monthly mortgage or Home Equity Loan payments. You should always keep these payments current if possible. If you cannot continue to make your monthly payments for reasons beyond your control, please contact us to discuss various alternatives to foreclosure depending on your specific circumstances.

If your payment difficulties are temporary, you may qualify for the following option:

  • Reinstatement - This is the payment of the total amount due in a lump sum by a specific date.

If your payment problem is long-term or it is not likely that you will be able to bring your loan current at any time, other options may be appropriate including the following:

  • Modification - If you can make monthly payment but are unable to bring your loan current, a modification changes the terms of your loan permanently to make the monthly payments more affordable. These changes may include one of the following: adding the missed payments to the loan balance, reducing the interest rate, or extending the term of your loan.
  • Sale of property - The property placed on the market, and the home equity loan is paid off from the proceeds at closing. In a "short-sale" situation, the lender accepts less than the total amount due and still considers the loan paid-in-full.
  • Deed-in-lieu of foreclosure - Foreclosure is a legal process by which a lender takes ownership of your home if you do not make the home equity payments. With a "deed-in-lieu" the lender accepts a transfer of the title to your home instead of foreclosure.

Please call our Loss Mitigation Department toll-free at +1 (800) 328-1935 ext. 2583, Monday and Friday between 8:00 am-6:30 pm and Tuesday through Thursday 8:00 am-9:00 pm (CT). A member of our staff will conduct an interview to determine your circumstances and explore options that may be available to you. Please do not delay - the sooner you call, the more likely we can find an alternative for you. To begin the review process, please have the following information available and ready when you call:

  • Your loan account number
  • A brief explanation of your financial circumstances
  • Your recent income documents including pay stubs and benefit statements from Social Security, disability, unemployment, retirement, or public assistance
  • Your tax returns from the previous two years
  • A detailed listing of your monthly household expenses

The U.S. Department of Housing and Urban Development ("HUD") sponsors housing counseling agencies throughout the country that provide advice and guidance regarding mortgage loan defaults, foreclosures, credit issues, and foreclosure alternatives. You can find a HUD counselor in your area by visiting the HUD Website or by calling HUD toll-free at +1 (800) 569-4287.

NOTE: THIS IS AN ATTEMPT TO COLLECT A DEBT AND ANY INFORMATION OBTAINED DURING A CALL WILL BE USED FOR THAT PURPOSE. IF YOU ARE CURRENTLY PROTECTED BY THE FILING OF A PETITION IN BANKRUPTCY OR HAVE BEEN DISCHARGED IN BANKRUPTCY, THIS SUMMARY IS FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE CONSIDERED AS AN ATTEMPT TO COLLECT THE DEBT.