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Avoid Foreclosure

Avoid Foreclosure

As your Credit Union, we are aware that economic conditions may create challenging situations 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 us as soon as possible. The quicker you call us, 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.

We will work with you to help you keep your house and avoid the costly foreclosure process, if at all possible. We are 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 our discretion to offer and accept potential remedies.

Options That May Be Available 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.


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 at a branch or by phone conference. The most important step is to seek help as early as possible. Remember, doing nothing will cause the greatest setback.

You’ll need these financial documents available when you meet with us:

  • Most recent statement for any non-AFCU mortgage on the same property
  • Most recent pay stubs
  • Most recent W-2 tax statement
  • Most recent bank statements for all bank accounts not at AFCU
  • Letter describing your financial difficulty and its impact on your financial situation
  • Written description of your income and expenses, and/or
  • Financial statement

To speak to a HUD-certified housing counselor, contact Housing and Urban Development (HUD) at their toll-free number, 800-569-4287.

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