Learn About Mortgage Assistance Alternatives

Learn more about the Mortgage Assistance alternatives that may apply to your mortgage loan according to loan type and your personal financial situation when applying for assistance.

Options that may be available depending on your type of loan:

• Forbearance
  If you need time to recover, this type of agreement is designed to address a short-term situation. During the forbearance, you will have a reduction in, or a suspension of, your monthly payment. This agreement will cause these payments to accumulate, so at the end of the agreement you must reinstate them or contact us to evaluate other options that will allow you to cover these outstanding monthly payments.
• Payment Plan
  This temporary agreement allows you to cover the months in arrears by adding an additional amount to your regular mortgage payment. A payment plan will not alter the original terms of your mortgage, such as the loan amount, interest rate, amortization and maturity.
• Modification
  If you qualify for reducing your mortgage payment or covering accumulated amounts, this agreement will allow you to restructure the original terms of your loan. This could include extending the term, capitalizing arrears, changing the interest rate and in some cases, it could defer or delay the payment of a portion of the loan until a later date.
  
  Depending on the type of loan, a trial period may be required. The trial period is a temporary agreement that is usually offered for three months prior to the modification, and in which consecutive payments will be required and that will be similar to what your modified payment might be.
  
  The goal is to confirm that you can handle this new payment. Once you meet the trial period’s consecutive payments, and subject to compliance in resolving any title issue pending applicable to registration processes, we will proceed to modify your mortgage. After signing the modification, your mortgage would be up to date.
• Short Sale
  The short sale alternative could be available in cases where the value of the property is lower than the amount owed to the bank for your mortgage loan and you don’t have the money to cover the deficiency. It allows you to cancel the mortgage loan for a balance that is less than the total owed. This means that a certain amount could be canceled or eliminated from the loan balance, so you can sell the property at the current market price.
  
  The terms of the approval will be set based on the applicable guidelines according to the type of loan.
• Deed in Lieu of Foreclosure
  Deed in lieu of foreclosure is another disposition alternative that could be available to you. If you qualify, you could surrender the property to the bank and cancel the mortgage loan, provided the title is clean and free of liens and the property meets the requirements for it. This option will allow you to cancel the loan and avoid a foreclosure process. It is important that you keep the property protected and in good condition while you own it.