As your local bank, we know that financial situations can change at any time. Often this can be a cause of missed payments, that can lead to foreclosure on your home. Please let us know if you are experiencing temporary or permanent financial difficulties. We want to work with you to find a mutually agreeable way to help you keep up with your mortgage payments and preserve your home.
Options That May Be Available And Steps To Take:
Below is a list of some of the options for when you have received a notice of foreclosure and the steps to take for further pursuing these options. Contact us today to learn more about the following foreclosure alternatives.
- Reinstate – Keep in mind that retirement plans will often allow a withdrawal in order to avoid foreclosure on your primary residence.
- Refinance – Your loan must be current to qualify. Contact us to begin the application process.
- Repayment Plan – You may qualify if you have experienced an involuntary reduction in pay or an increase in living expenses. A complete financial packet may be required depending on the degree of delinquency and repayment term.
- Temporary Forbearance – You may qualify if you have experienced an involuntary reduction in pay or an increase in living expenses. You must show that you would be able to bring the loan current at the end of the plan. A complete financial packet may be required depending on the degree of delinquency and repayment term.
- Pre-foreclosure Sale – This option will allow you to sell your property and pay off your mortgage loan to avoid foreclosure and damage to your credit rating even though your property may not be in an equity position.
- Loan Modification – You may qualify if you have experienced an involuntary reduction in pay or an increase in living expenses. You may be able to refinance the debt and/or extend the term of your mortgage loan during a specified time frame. This would help you catch up by possibly reducing your payments to a more affordable level for a period of time. A complete financial packet will apply.
- Deed in Lieu of Foreclosure – As a last resort you may be able to voluntarily ‘give back’ your property. This won’t save your house. You can qualify if: 1) you are in default and don’t qualify for any of the other options; 2) your attempts at selling the house were unsuccessful; 3) there are no other liens against the property.
Required Financial Documents:
The following documents will be required in order to evaluate your financial situation completely. You will find it very helpful to have them available when speaking to a housing counselor.
- Completed Borrower Financial Information
- Copy of most recent tax return
- Proof of household income including monthly pay stubs, any rental income, unemployment, social security and/or disability benefits, child support or government assistance
- Outstanding medical bills
- Letter of hardship
- Depending on the situation and type of assistance we may be able to offer, further documentation may be required at a later date
Who to Contact With Questions:
Your local Baker Boyer:
If you are experiencing temporary or permanent financial difficulties, please call us at (509) 525-2000 or toll free at (800) 234-7923 and ask for our Loan Counseling Department to discuss your situation and the options available to you or to schedule an appointment.
HUD Toll-free Telephone Number For Housing Counseling Agency:
The Department of Housing and Urban Development (HUD) offers free home ownership counseling. To find out where the nearest counseling agent is in your area, contact 800-569-4287 or TDD 800-877-8339.