Possible Options If You Are Concerned About Foreclosure
As your Credit Union, we are aware that current economic conditions have created a challenging situation for many individuals and families to meet their financial obligations. If you are facing difficulties making your mortgage payments, you should take immediate action and call American First at 800-290-1112, as soon as possible. The quicker you do the more options you will have to avoid the start of foreclosure action on your property. The longer you wait the more difficult and expensive the process is to stop. A formal foreclosure will damage your credit rating, negatively impacting your ability to borrow money in the future.
American First Credit Union will work with you to help you keep your house and avoid the costly foreclosure process, if at all possible. However, please remember: your lender is under no obligation to offer or accept a new arrangement. If you have become delinquent on your loan, you are responsible for the default and it is at the discretion of the lender to offer and accept potential remedies.
Options that may be available to you based on our evaluation and your individual situation include:
• Loan Modification – An option to temporarily change the terms of the mortgage to make payments more affordable. Example actions include: an extension to the number of years on the loan, or a change in rate to lower your payment during your hardship.
• Payment Plan to Bring Current - This would involve a temporary payment schedule of your regular payment plus a portion of past due amounts on a monthly basis until you are current.
• Forbearance – Reduced or suspended payments for a short period of time, after which another option will be agreed upon to bring the loan current. A forbearance option is often combined with a repayment plan or modification to bring the account current at a specific time.
• Deed in Lieu - you may be able to hand over your home to American First Credit Union to cancel or in exchange for your debt. This is not always possible depending on various factors which we will discuss with you if you are looking toward this option.
• Sale or Short Sale – If affording a home is no longer an option, then a sale can be a solution. A short sale allows the Member to sell their home even if the mortgage balance exceeds the value of the home.
Contact American First Credit Union at 800-290-1112 to discuss these options and assist you in determining what may be most appropriate for you. You will have the option of meeting with us personally or by phone conference. You’ll need these financial documents available when you meet with us.
• Most recent pay stubs
• Most recent W-2 tax statement
• Most recent bank statement
• Letter describing your financial difficulty and its impact on your
• Written description of your income and expenses, and/or
• Financial statement
The most important step is to seek help as early as possible. Remember, doing nothing will cause the greatest setback.
To speak to a HUD-certified housing counselor, contact Housing and Urban Development (HUD) at 800-569-4287.