Steps you can take today to avoid foreclosure
Sometimes the unexpected challenges of life can make the responsibility of home ownership a tough one. If you’ve lost your job, been through a divorce or suffered illness, you may be having a hard time making your mortgage payments. If so, there is help available.
Call your Mortgage Company: In an effort to help you get your mortgage back on track, call Altura Credit Union today to find a solution that’s right for you. Don’t risk losing your home or jeopardizing your credit when there’s help available. Your options for retaining your home are most effective when you are only one or two payments behind. Financial relief options include:
- Reinstatement: occurs when you pay the total amount you are behind, in a lump sum, by a specific date.
- Repayment Plan: agreement giving you a fixed time to repay the behind amount, combined with your regular payment.
- Loan Modification: written agreement that changes one or more of the original terms of your mortgage.
- Short payoff: If you sell your house but the sales proceeds are less than the total amount you owe on your mortgage, we may agree to a short payoff and write off all or some of the portion that exceeds the net proceeds from the sale.
Altura Credit Union is very interested in discussing options that may help you avoid foreclosure, SO YOU ARE ENCOURAGED TO CALL US AT 866-571-5078 AS SOON AS POSSIBLE TO SEE WHAT FORECLOSURE OPTIONS MAY BE AVAILABLE FOR YOU. Please call us at your first opportunity- we can’t do anything until you open the lines of communication and we understand your current situation and know what you want or can do.
Contact A Non-Profit Housing or Credit Counseling Agency:
Credit Counselors can help you organize a budget to pay your mortgage and other monthly expenses without your mortgage company’s initial direct involvement. These agencies can also help you find and take advantage of local services or programs that provide financial, legal, medical or other support. You can find a credit counseling agency in your local phone book or by contacting the U.S. Department of Housing and Urban Development (HUD) at 800-569-4287.
If you cannot, or do not want to keep your home, your mortgage company can work with you to avoid foreclosure:
This can help reduce the negative effect on your credit reputation. There are several different ways this might occur depending upon your financial circumstances.
Beware of predatory lenders:
Predatory lenders often target people in financial distress. They try to panic you into high cost mortgages, making financial problems worse and increasing your risk of losing your home. Predatory lenders usually offer loans with:
- Higher interest rates than the rates for which you may qualify
- Excessive broker fees or Unnecessary costs like pre-paid life insurance
- Terms that will make it very difficult or impossible for you to repay the loan
Here are some tips to protect you from predatory lenders:
- Be suspicious of anyone who offers you “bargain loans,” whether they mail, fax or email an offer to you, call you on the phone, or come to your door.
- Beware of promises of “No Credit? Bad Credit? No Problem!” and offers that are only “good for a very short time”.
- Avoid lenders who encourage you to borrow more than you need or more than the value of your home.
- Beware of terms that change at the last minute or offer next-day approval based on pre-payments or upfront fees.
- Do not sign anything you don’t understand. It is your right and duty to ask questions.
- Beware of disreputable credit counseling agencies charging high fees for financial counseling service you can get for little or no charge through non-profit agencies. You can find a list of HUD-approved agencies by visiting the HUD website at www.hud.gov, and click on “foreclosure” (under Homes).
Remember: Anything that sounds too good to be true usually is. If you suspect a predatory mortgage company is targeting you, call your local office of consumer affairs, the Federal Bureau of Investigation, an approved credit counseling agency, or your local “Don’t Borrow Trouble” campaign: www.dontborrowtrouble.com.
You can take advantage of the foreclosure alternatives listed above by:
- Contact Balance Financial Fitness at (888) 456-2227. They will first assist you with completing a Budget Analysis.
- Forward to us a copy of the Budget Analysis received from Balance
- Signed hardship letter that details what caused an income reduction or other financial burden.
- Self-employed members – most recent filed tax returns, all schedules, and W-2’s.
- Fill out and sign the Altura Credit Union financial worksheet
- Proof of homeowners’ insurance.
- Verification of property taxes (current or delinquent).
- Fill out and sign the Request for Transcript of Tax Return
- If requesting a modification on a second mortgage, verification of your first mortgage modification is required.
- Provide 2 months current and complete bank statements from members obligated on loan.
- Provide 2 months current pay stubs from members obligated on loan.
- For each member who is a salaried employee:
- Copy of the two most recent pay stubs; and
- Copy of the most recent filed federal tax return with all schedules and W-2.
- For each member who is self-employed:
- Copy of the most recent filed federal tax return with all schedules; and
- Copy of the most recent quarterly or year-to-date profit/loss statement.
- For each member who has income such as social security, disability, or death benefits, pension, public assistance, or unemployment:
- Copy of most recent federal tax return with all schedules and W-2.
- Copy of benefits statement or letter form the provider that states the amount, frequency and duration o the benefit. Social security, disability, death or pension benefits must continue for at least 3 years to be considered qualifying income. Public assistance or unemployment benefits must continue for at least 9 months to be considered qualifying income
- For each member who is a salaried employee:
Please note the additional requirements for short sale requests:
- Offer – Full Market Value
- Estimated Net Sheet – MUST Include:
- Show estimated Net amount to Altura Credit Union
- The SELLER must net ZERO
- Estimated Closing Date
- Written Approval from Lien Holders
Please fax the above mentioned items to 951-571-5818 or mail them to:
Altura Credit Union PO Box 908 Riverside, CA 92502-0908 Attn: Mortgage Loan Servicing
Upon receipt and review of the above information, a Loan Counselor will contact you to discuss foreclosure alternatives.
While hardship package is being reviewed it is important to keep your loan/s current.
Made Possible by Altura Credit Union and Freddie Mac