You may also contact U.S. Department of Housing and Urban Development (HUD) to find a HUD-certified housing counseling agency by calling Toll Free (800) 569-4287 or TTY (800) 877-8339. Additional information is made available by HUD on its website at http://www.hud.gov
- Don’t ignore the letters from your lender
- Contact your lender immediately
- Contact a HUD-approved Counseling Agency
Important reminder: The borrower is obligated to make all future payments as they come due, even while Fremont Bank is evaluating the types of assistance that may be available.
In addition: Fremont Bank cannot guarantee that the borrower will receive any (or a particular type) of assistance.
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What is involuntary inability to pay?
The basis for our relief and workout options is to assist borrowers who are experiencing an involuntary inability to pay. A borrower is considered to have an involuntary inability to pay if he/she does not have the ability to make monthly payments because of…
An involuntary reduction of income due to
- Unemployment
- Mandatory pay reduction (could result from elimination of overtime, reduction in regular working hours, or a reduction in base pay)
- Under-employment following a previous job loss
- Death of primary wage-earner in household
- Decline in business earnings for a self-employed borrower
- Incarceration of a spouse or co-borrower
- Permanent or short-term disability
- Serious illness of a household member
- Divorce
- Legally documented separation
An unavoidable increase in expenditures due to
- A disability or illness that results in an increase in uninsured major medical expenses
- A natural or man-made disaster damaging the property
- An unanticipated capital expense for property maintenance that, if not performed, would result in sufficient damage to the point of negatively affecting the property value
- Over-extended credit caused by the borrower having to use credit to pay his/her monthly mortgage, food expenses or utility bills
What is not involuntary inability to pay?
A borrower is not considered to have an involuntary inability to pay when the borrower has…
- Experienced depreciation/reduction in his/her property value
- Voluntarily quit a job
- Voluntarily quit a job to stay home and care for children
- Voluntarily reduced the number of hours worked, thus reducing the pay received
- A job that has seasonal layoffs
- Overextended credit caused by excessive spending for non-essential items
- Unnecessary monthly expenses due to lifestyle decisions
- Temporary income interruption, but the borrower has assets available to pay the mortgage
- Separated from his/her spouse, but is not legally documented
- Bought another home and the borrower cannot afford to pay both mortgage payments
Alternatives to Foreclosure
Financial ability and desire to keep the property
- Full Reinstatement— By paying all payment amounts due including advances, payments, late fees, legal costs and other expenses, the loan is no longer delinquent.
- Repayment Plan— Repays the delinquent amount over a specified and agreed upon period of time over and above the normal monthly payment. (Generally used in cases of temporary loss of income)
- Forbearance—It’s a written agreement to reduce or suspend monthly payments for an agreed upon expiration of this time frame, the past due amounts will be paid in full or other alternatives will be pursued. This is generally offered when a temporary setback has occurred but a future resolution is imminent.
- Loan Modification—It changes one or more of the terms of the original loan agreement in order to affect a permanent cure of the delinquency. New documents are then obtained.
- Delinquent Loan Refinance—New financing
- Borrower Assistance Plan—If the loan has Private Mortgage Insurance, the insurance company may advance a portion or all of the delinquency on behalf of the borrower. Generally, this amount is repaid to the insurer by the borrower via a no-interest promissory note over a specified period of time. This option is usually made available when a temporary financial hardship exists.
If you cannot qualify for option 1-6 and are unable to keep your home
- Delinquent Loan Assumption—With a loan assumption, a financially qualified buyer assumes the delinquent loan. Used when payments can no longer be made. You, as the original borrower may or may not be released from financial responsibility.
- Pre-Foreclosure Sale or Short Payoff—The sale of the property when the sales proceeds net is less than the amount owed because of a decline in property values. This option generally is pursued when no further payments can be paid and only when other options are exhausted.
- Deed-in-Lieu of Foreclosure—The acceptance of a deed to avoid foreclosure. This final alternative to foreclosure is applicable when no further payments can be made, a serious effort has been made to sell the property at current market value, and none of the other options are feasible.
If you wish to pursue options 1 or 2, please call our Call Center at 866-617-7293.
For more long-term solutions (options 3-9), you must provide us with documentation to establish your involuntary inability to pay the mortgage. The list below provides the minimum documentation that you must submit based on your specific situation.
Documentation can be emailed to collections.department@fremontbank.com or sent directly to:
Fremont Bank
Loss Mitigation Unit
PO Box 7295
Fremont, CA 94537 |
