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OPTIONS TO KEEP YOUR HOME

Your available loss-mitigation options depend on the investor, the type of loan you have, and
what the beneficiary is able to negotiate.

Refinance – A new mortgage on the loan with no change in ownership. The ability to refinance
a loan requires that the borrower not be delinquent on their mortgage payment. To be eligible
for a refinance there may need to be equity in the property; however, some programs do allow
refinances with little or no equity.

Repayment Plan – Plan where the total amount of delinquent payments is distributed over a
period of time, usually no more than 12 months. The monthly amount is added to the regular
mortgage payment, resulting in a higher payment until the delinquent amount has been repaid.
This repayment plan brings the account current within a pre-determined period of time.

Loan Modification – A modification of the loan term with no change in ownership. Past-due
interest and escrow are applied to the unpaid principal balance, which is then re-amortized over
a new term. Rate adjustments, term extensions, principal forgiveness, and principal forbearance
may be considered. Some loan modifications require a trial payment plan for approximately 3 to
4 months before the loan modification will be made permanent. A loan modification results in
permanent, contractual changes in one or more mortgage terms. Additional loan fees may be
involved based on the type of mortgage and the investor. A loan modification immediately
brings the account current.

Forbearance – A temporary reduction or suspension of a borrower’s payment. The repayment
plan is based upon the customer’s financial situation. A forbearance may be an option for
borrowers experiencing temporary unemployment or medical issues. Because of the long-term
implications, this option is generally only available in severe hardship cases.

Bankruptcy – A legal procedure for dealing with debt problems of individuals and businesses
that may or may not allow you to keep your home. Be sure to seek the advice of an attorney if
you are considering this option. See Options to Not Keep Your Home for more information.

January 2020 | Page 30