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Topic 4:
Know Your Options

Topic 4: Know Your Options
• Keeping or Not Keeping Your Home
• IRS Mortgage Forgiveness Debt Relief Act and Debt Cancellation

KEEPING OR NOT KEEPING YOUR HOME

There are a number of solutions for a distressed homeowner. Solutions are individualized for
each customer and are based on all of the following:

• Reason(s) for delinquency.
• Ability and willingness to pay. The servicer will consider your payment history
(whether you had previously been making your payments on time) and your current
financial condition (whether your current income and expenses allow you to
continue making payments as required).
• How behind you are.
• The beneficiary of your loan. The beneficiary will know the investor’s policies for
working with delinquent borrowers. A beneficiary must always follow the investor’s
requirements.
• The number of mortgages on your home.
• Occupancy status of the home.

Take Action! List the things you can do that don’t involve the servicer. Examples include
reducing your expenses, increasing your income, and selling assets:

January 2020 | Page 29