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| • AVOIDING FORECLOSURE |
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▲ Financial Package Requirements ▲ Financial Statement ▲ Form 4506T/Form SSA 89 ▲
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AVOIDING FORECLOSURE
What if you cannot pay your mortgage and need help now?
Call your mortgage company now!
You may reach an individual to help you at Provident Bank by dialing (800)
686-3756, extensions 15150, 15008, or 16161.
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| Keeping Your Home, Protecting Your Investment |
Sometimes, the unexpected challenges of life can make the responsibility of
homeownership a tough one. If you have lost your job, been through a divorce or suffered illness, you may be having a hard time making your mortgage payment. If so, there is help available.
In an effort to help you get your mortgage back on track, call us today to find a solution that is right for your individual situation. Don’t risk
losing your home or jeopardizing your credit when there’s help available.
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| Avoiding Foreclosure |
If you don’t pay your
monthly mortgage payments over a period of time, the mortgage
company can foreclose. This means you will lose title to your
property and may be evicted from your home.
A foreclosure becomes
part of your credit report and may adversely affect your ability to
obtain credit in the future. To avoid possible foreclosure, it is
helpful to have money saved to cover several months of your housing
costs in case of an unexpected emergency, like job loss, divorce or
separation, serious illness, or the death of a loved one.
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What if You
Cannot Pay Your Mortgage?
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1.
Call your mortgage company now!
You may reach an individual to help you at Provident Bank by dialing
(800) 686-3756,
extensions 15150, 15008, or 16111.
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As soon as you realize that you are
unable to make your mortgage payments, talk about your circumstances
with the mortgage company to which you send your monthly mortgage
payment. Your options for retaining your home are most effective
when you are only one or two payments behind.
Too many people
in financial trouble wait until the last minute to call their
mortgage company. Some hope their problems will quickly resolve
themselves, others worry the mortgage company will rush to
collection or foreclosure. The truth is: the longer you wait, the
greater your chance of losing your home because of the increasing
amount of debt. If you are unable to make your mortgage, don’t
delay—call your mortgage company immediately. In a significant
number of all foreclosures, the borrowers did not return their
mortgage company’s calls or written invitations to discuss payment
options.
Depending upon your situation, your mortgage
company may be able to provide you with temporary financial relief.
Here are a number of alternatives to discuss with your mortgage
company.
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Forbearance is
an agreement to temporarily let you pay less than the full amount of
your mortgage payment, or pay nothing at all, during the forbearance
period. Mortgage companies may consider forbearance when you can
show that funds from a bonus, tax refund, or other source will let
you bring the mortgage current at a specific time in the future.
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A reinstatement occurs when you pay
your mortgage company the total amount you are behind, in a lump
sum, by a specific date. This is often combined with forbearance.
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A repayment plan is an agreement that gives
you a fixed amount of time to repay the amount you are behind by
combining a portion of the amount past due with your regular monthly
payment. At the end of the repayment period you have gradually paid
back the amount of your mortgage that was delinquent.
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A loan modification is a written
agreement between you and your mortgage company that permanently
changes one or more of the original terms of your mortgage to make
the payments more affordable. Common loan modifications include
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Deferring missed payments
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Modifying the terms of your existing mortgage.
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2. Contact a Non-Profit Housing or Credit
Counseling Agency
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Non-profit housing and credit
counselors can help you analyze your financial situation. They can
help you organize a budget to pay your mortgage and other monthly
expenses—without your mortgage company’s initial direct
involvement. These agencies can also help you to find and take
advantage of local services or programs that provide financial,
legal, medical or other support.
You can find a credit counseling agency in
your local phone book or by contacting the U.S. Department of
Housing and Urban Development (HUD) at (800) 569-4287 on weekdays
between 9:00 a.m. and 5:00 p.m. Eastern time. You can find a list of
HUD approved agencies by visiting the HUD website at
www.hud.gov/offices/hsg/sfh/hcc/hccprof14.cfm.
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What if You Can no Longer Afford to Keep Your Home? |
If you need help with the following workout scenarios, you can download the Financial Package Requirements and
Financial Statement listed at the top of this page. |
If
you cannot or do not want to keep your home, your mortgage company can work with you to avoid foreclosure. This can help reduce the
negative effect on your credit reputation. There are several different ways this might occur depending upon your financial circumstances:
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Your mortgage company may permit a
qualified borrower to assume or take over your mortgage debt and
make the mortgage payments, even if the mortgage is non-assumable.
As a result, you may be able to sell your property and avoid
foreclosure.
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If you can sell your house but the
sale proceeds are less than the total amount you owe on your
mortgage, your mortgage company may agree to a short payoff and
write off the portion of your mortgage that exceeds the net proceeds
from the sale. You may owe taxes on the amount that is forgiven.
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