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Avoiding Foreclosure

Your credit union is aware that current economic conditions have created a challenging situation for many individuals and families to meet their financial obligations. If you are facing difficulties making your mortgage payments, please contact your lender. The good news is programs are available for homeowners having difficulty with their mortgage payment. The sooner you contact your lender, the more options you will have to avoid foreclosure. Whether your loan is with BHCCU or another lender, it is important to contact your lender as soon as you recognize a problem making your mortgage payments.

The Consequences of Foreclosure

It is important to understand what could happen if a lender forecloses on your home:

  • The money you have invested in your home will be lost
  • Negative consequences to your credit score
  • Negative impact on your ability to obtain a mortgage in the future
  • You could be held liable for any losses the lender incurs

Options that your lender may offer

  • Loan Modification – A change to the terms of your loan making it more affordable
  • Forbearance – Reduced or suspended payments for a set period of time, followed by other agreed-upon options to bring the loan current
  • Repayment Plan – A schedule of payments to catch up on past-due amounts

Financial documentation you may need for discussion with your lender:

  • Most recent tax returns
  • Copies of two most recent pay stubs or most recent quarterly or YTD profit/loss statement if self-employed
  • Most recent W-2
  • Most recent bank statements
  • A written statement explaining your financial hardship
  • A written financial statement detailing your income and expenses

Other documentation may be required for full consideration. Please contact your lender for specific requirements and programs.

 

Act now

If you are having difficulty making payments to your BHCCU Mortgage, give us a call at 1-800-779-5555. We have programs that may assist you during these difficult times.

Additional Resources

  • 12 Key Points when You Contact Your Lender
  • Free Credit Counseling - BHCCU members can receive free budget and debt counseling services through the BALANCE Financial Fitness Program. Visit the BALANCE website or call to speak to a counselor at 1-800-456-2227.
  • FHA Assistance Program - The Federal Housing Administration’s HOPE for Homeowners program offers affordable refinancing options to homeowners at risk of default and foreclosure. The program is effective from October 1, 2008 to September 30, 2011.
  • HOPE NOW Alliance – Mortgage industry counselors, servicers, and investors have combined forces to provide outreach and assistance to homeowners in distress. Visit HOPE NOW or call 1-888-995-HOPE (1-888-995-4673).

For a comprehensive list of community counseling agencies, visit the Department of Housing and Urban Development or call 1-800-569-4287.

Visit the BHCCU Mortgage Center.