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| | What You Should Know About Foreclosures, Loss Mitigation, and Modifications
At Kern Schools Federal Credit Union, we are aware that the economy is creating an environment of hardship for many individuals and families to meet their financial obligations. If you are unable to make your mortgage payment during this difficult time, it is our recommendation to take immediate action and call your certified housing lender or lender.
The quicker your plan is put into place, the more options you will have to avoid foreclosure on your home. In other words, the longer your wait, the process becomes much more difficult and expensive. Most lenders would prefer to work with you to keep your house than go through the foreclosure process. A formal foreclosure will damage your credit and hinder your ability to borrow money in the future.
There are options that are available to you based on your individual needs and the lender's assessment of your situation:
Forbearance - The lender may reduce or suspend payments temporarily, after which another plan of payment will be agreed upon to make the loan current. Forbearance is usually combined with a repayment plan or modification to bring the account current at a specific time.
Repayment Plan - The lender may accept a schedule to repay the past-due amounts.
Loan Modification - The lender may temporarily change the terms of the mortgage loan to make payments more affordable. For instance, an extension of the terms on the loan or lowering the interest rate.
You will need to bring some documentation with you to discuss these options with the lender:
Most recent W-2 tax statement
Most recent pay stubs
Most recent bank statements
A written financial statement detailing your income and expenses
A written statement explaining your financial hardship
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| | Who to Contact | |
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| If your lender is Kern Schools Federal Credit Union: | Loan Adjustments Dept.
(661)833-7505 or (800)221-3311 | If your lender is Fannie Mae (FNMA): Know your options
Not sure who your lender might be? The Fannie Mae Loan Lookup enables mortgage borrowers to quickly determine if Fannie Mae owns their loan by providing a street address, unit, city, state, and ZIP code. | http://www.knowyouroptions.com
http://www.fanniemae.com/loanlookup/ | | If your mortgage lender is another institution: | Contact your lender directly | | For counseling - HUD(housing and urban development) certified housing counselor: | (800)569-4287 | | |
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| | As always, we are here to help. If you still need further assistance after contacting HUD or your lender, please feel free to contact us at (800)221-3311. | |
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