Information to Help with Home Loan Payments
If you are experiencing a hardship, we are here to help you. Please contact us toll free at 1-800-848-6165, or via email at [email protected] to get started. Some options that may be available to assist you are:
Some options that may allow you to stay in your home
What is a reinstatement?
A reinstatement means that you pay the total missed amount all at once.
How may a reinstatement help?
By paying all past due balances, your loan will become current, and you can continue making regularly scheduled payments right away.
Considerations to think about:
- If your payments are past due because of a hardship, it may be difficult for you to come up with enough money to pay current and reinstate.
- Often a reinstatement does not require a modification of the loan’s terms or any additional documentation.
- Your credit score may still be impacted by the past delinquent payments even if you pay current.
What is a forbearance?
If you are experiencing a temporary hardship such as unemployment or a medical illness, a forbearance may be an option to suspend or reduce your regular monthly mortgage payment for a short period of time.
How may a forbearance help?
A forbearance may provide short-term relief for short-term financial challenges and may help you avoid foreclosure.
Considerations to think about:
- Payments will only be paused or suspended, but they are not forgiven. The paused payments will likely be due at the end of the forbearance period or will be rolled into your outstanding balance, and this may increase your monthly payment for the remaining life of the loan.
- If your temporary hardship continues after the end of the forbearance period, you will need to continue communicating with us in order for us to help assist and explore additional options.
What is a repayment plan?
A repayment plan allows you to repay the missed amounts over a period of time (usually no more than 6-12 months).
How may a repayment plan help?
Repayment plans are useful to allow you to get caught up on the past due amounts due to a short-term hardship.
Considerations to think about:
- You will still be required to make the regular scheduled payment in addition to the repayment plan payment.
- The hardship must be temporary and the past due amount able to be paid current in a relatively short period of time.
What is a loan modification?
If you are experiencing a more long-term financial hardship, a loan modification may be an option to change certain terms of your loan agreement in order to help you make your repayment terms more manageable going forward. There are many types of loan modifications. We will work with you to determine what options may be available for your loan.
How may a loan modification help?
A loan modification may help you stay in your home and avoid a foreclosure sale. This may also be less damaging to your credit score and help you get caught up on past due amounts.
Considerations to think about:
- If your loan has an escrow account associated with it, there may be some considerations specific to escrow.
- We may be able to provide a trial modification prior to permanently changing the loan’s terms.
- We must receive the required documentation more than 37 days prior to any scheduled foreclosure sale.
Some options that would require you leaving the home
What is a deed-in-lieu?
This option allows you to voluntarily transfer ownership of your home to us and may relieve you from having to repay the remaining mortgage balance by doing so.
How may a deed-in-lieu help?
Typically you will not be responsible for any fees when you undergo this option, and it may help you avoid a foreclosure sale which can be damaging to your credit score.
Considerations to think about:
- You may have to pay the remaining balance after the value of the home is applied to your loan balance. If you don’t have to pay the remaining balance, you may have tax implications and should seek tax guidance from a tax advisor.
- If there are other liens against the property, those will need to be addressed prior to the deed-in-lieu being carried out.
What is a short sale?
This option allows you to sell your home for less than the amount you owe on your loan, and it may release you from having to repay the remaining balance after the sale.
How may a short sale help?
Often you can avoid a foreclosure sale by going through a short sale, and this allows you to stay in your home until the new owner takes possession.
Considerations to think about:
- You may have to pay the remaining balance after the amount of the home sale is applied to your loan balance. If you don’t have to pay the remaining balance, you may have tax implications and should seek tax guidance from a tax advisor.
- If there are other liens against the property, those will need to be addressed prior to the short sale being carried out.
If you are interested in exploring these options or any other options that may be available to avoid foreclosure, next steps include:
- Contact us toll free at 1-800-848-6165 or by email at [email protected].
- Submit a mortgage assistance application (for non-farmers) OR a distressed loan restructuring application (for part-time and full-time farmers)* and all required documentation (listed below).
- Once we receive your application and documentation, we will review and respond to you acknowledging your application, and informing you if more information is needed.
*If you need help determining which application applies to you, please contact us.
Required application and financial documentation** we need from each borrower in order to evaluate mortgage assistance options for you:
- Complete Mortgage Assistance Application or Distressed Loan Restructuring Application, signed by all borrowers
- Supporting hardship documentation
- Most recent paystub and/or other earnings information
- Most recent tax filing W2
- Last two years of tax returns – personal and business (if applicable)
- Bank statements for the last two months
**Please note that additional documentation may be requested by us upon review of your application.
To submit the application and required financial documentation:
- Mail required documents to P.O. Box 34390, Louisville, KY 40299, ATTN: SAU; or
- Contact us at 1-800-848-6165 or [email protected] for instructions to submit information securely. Please do not email financial documents before receiving secure instructions since email is not considered a secure form of communication.
For further help exploring options to avoid foreclosure, the following are federal resources for contacting housing counselors:
- Department of Housing and Urban Development (HUD):
- Housing Counselor Locator – 1-800-569-4287
- List of Nationally HUD-approved Housing Counseling Agencies
- Consumer Financial Protection Bureau: Find a Housing Counselor
