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Options that may be available to borrowers
who are unable to afford their mortgage payments and who wish to
avoid foreclosure, and instructions on how to explore those options:
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At this point, if your loan has not matured, you may bring your
loan current if you have the ability to do so.
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The U.S. Department of Housing and Urban
Development (HUD) funds free or very low cost housing counseling
nationwide. Housing counselors can help you understand the law
and your options, organize your finances and represent you in
negotiations with your lender if you need this assistance. Find
a HUD-approved housing counselor near you or call (800) 569-4287
or TTY (800) 877-8339.
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You may find other alternatives on the HUD website including articles on “Tips for
Avoiding Foreclosure” by going to the following web site at
http://www.hud.gov/foreclosure/.
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[Refinance] Depending on your financial situation, you
may be able to refinance your loan with your lender or with another
lender. At this time, there is no guaranty that you will qualify
for a refinance, so you should consider all of your options even if
you decide to try to refinance.
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[Pre-foreclosure sale of property] If you cannot
refinance your property, you may be able to sell it before it is
foreclosed. However, time is important so you may want to
investigate this option and other options right away.
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Depending on your financial situation, and subject to
the lender’s policies and agreement, you may be able to arrange for
the following in order to avoid or delay the foreclosure of your
property:
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A forbearance agreement or workout agreement
where the lender and the borrower agree, in writing, that the lender
will defer foreclosing so long as the borrower does certain things
including, but not limited to, making agreed upon post-default
payments;
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A loan modification – where the lender and
borrower agree, in writing, to modify the terms of your loan;
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If you have not been able to sell your property and
have no lien junior to your lender’s deed of trust, your lender may
accept a deed-in-lieu of foreclosure in satisfaction of the
amount of your loan.
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Where the current fair market value of your property
is less than the amount you owe on your loan, the lender may agree
to a short sale allowing your property to be sold for less
than the amount of the loan balance.
The borrowers should
collect and be prepared to present financial documents to the beneficiary or authorized
agent (FCI) when discussing options for avoiding foreclosure:
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Mortgage or Loan Statements from all
Senior or Junior Mortgages.
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Latest payment notification.
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Letters from the loan servicer.
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Personal information list including names
of qualified borrowers, property and residence addresses, social security
numbers, contact phone numbers, employers with addresses and
phone numbers.
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Pay Stubs from all qualified borrowers for two months.
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Bank Statements from all qualified
borrowers for two months.
Note: If borrower is represented by an Agent or
Representative, then borrower needs to complete the Agent
Authorization Form. Please contact FCI to obtain this form.
Toll free telephone number to FCI Lender
Services for borrowers who wish to discuss options for avoiding
foreclosure with their mortgagee, beneficiary, or authorized agent
(FCI) is 1-800-931-2424. Business hours are 8 a.m. to 5 p.m. PST,
Monday through Friday.
Please be advised that FCI is attempting to
collect a debt and any information obtained will be used for that
purpose.
The state Rosenthal Fair
Debt Collection Practices Act and the federal Fair Debt
Collection Practices Act require that, except under unusual
circumstances, collectors may not contact you before 8 a.m. or after
9 p.m. They may not harass you by using threats of violence or
arrest or by using obscene language. Collectors may not use false or
misleading statements or call you at work if they know or have
reason to know that you may not receive personal calls at work. For
the most part, collectors may not tell another person, other than
your attorney or spouse, about your debt. Collectors may contact
another person to confirm your location or enforce a judgment. For
more information about debt collection activities, you may contact
the Federal Trade Commission at 1-877-FTC-HELP or www.ftc.gov.
Toll free number made available by the
United States Department of Housing and Urban Development (HUD) to
find a HUD certified housing counseling agency is 1-800-569-4287 or
TTY/TDD 1-800-877-8339. You may find other useful consumer
information on foreclosure alternatives on the HUD website at
http://www.hud.gov/foreclosure/ including an article on “Tips
for Avoiding Foreclosure”.
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