Tips For Avoiding Foreclosure
Tips To Avoid Foreclosure On Your Primary Residence
Alternatives to Foreclosure
If you are a homeowner experiencing temporary or permanent financial difficulties, it's very important that you contact your lender to ask for assistance. Some of the options that you can discuss with your lender are:
With this solution, your lender may discuss accepting the total amount owed in a lump sum by a specific date. This option may be combined with forbearance.
If you have experienced a reduction in pay or an increase in living expenses, you may be able to reduce or suspend payments on the loan for your primary residence for a short period of time. At the end of the agreed upon time, you must show that you will be able to bring the loan current.
With this option, you agree to resume making regular monthly payments in addition to a portion of the past due payments each month until you are caught up.
To qualify for a refinance, your loan must be current. Ask your lender if you qualify for this option.
Pre-foreclosure Sale (Short Sale)
You may be able to sell your property and pay off your mortgage even though your property may not be in an equity position.
To help you catch up, you may be able to refinance your debt and/or extend the term of the mortgage loan on your primary residence during a specified time frame. This would reduce your payments to a more manageable level during this time.
It is important for your lender to see your whole financial picture so they can determine the options available to you. Please put together the following information before contacting your lender:
- Your loan account number
- Your most recent loan statement
- A brief explanation of your circumstances
- A list of your assets
- Recent income documents such as pay stubs, Social Security benefits statements, disability, unemployment, retirement or public assistance statements. If you are self-employed, be prepared to provide your tax returns or a year-to-date profit and loss statement from your business.
- List of monthly household expenses, including any outstanding medical bills.
If you are experiencing financial difficulties, and are worried about the possibility of foreclosure, here are some contacts to assist you. Please note at Community Bank, we may not be able to assist you directly if your mortgage is serviced by another party (i.e. you do not receive your monthly statement from us).
Housing and Urban Development (HUD)
Oregon Department Of Financial Institutions
Washington Department of Financial Institutions (DFI)
Homeownership Information Hotline: 877-894-4663