Tips for Talking to Your Mortgage Servicer
If you’re facing financial uncertainty, it can be helpful to ask your mortgage servicer what mortgage relief options are available to you — ideally before you fall behind with your monthly mortgage payments. Your mortgage servicer is the company listed on your mortgage statement.
Before you call, here are some tips:
Tip 1: Understand mortgage assistance options
Mortgage assistance comes in many forms. Determining which type is best for you depends on various factors in your financial situation — such as how much you owe, how much you earn, and how many other expenses you have each month. Your mortgage servicer will help guide you toward the right option.
Refinance—Replace current mortgage with a new loan with new terms Forbearance—Temporarily reduce or suspend monthly payments Reinstatement—Pay the total missed amount all at once Repayment plan—Pay past-due amounts over multiple months Payment deferral—Delay past-due amounts to end of loan term Loan modification—Change the terms of your existing loanIs one of these options right for you?
Sale with equity: Sell home, pay off mortgage, and keep leftover amount Short sale: Sell home for less than remaining mortgage balance Mortgage Release™: Transfer ownership and all financial responsibilityIs one of these options right for you?
Is one of these options right for you?
Refinance—Replace current mortgage with a new loan with new terms
Forbearance—Temporarily reduce or suspend monthly payments
Reinstatement—Pay the total missed amount all at once
Repayment plan—Pay past-due amounts over multiple months
Payment deferral—Delay past-due amounts to end of loan term
Loan modification—Change the terms of your existing loan
Is one of these options right for you?
Sale with equity: Sell home, pay off mortgage, and keep leftover amount
Short sale: Sell home for less than remaining mortgage balance
Mortgage Release™: Transfer ownership and all financial responsibility
Tip 2: Get the most out of your first meeting with your servicer
In your first session with your servicer, they’ll start by asking you about your finances. Although not necessary, it helps to have some information prepared:
- Have recent pay slips and tax returns.
- Look at your bank statements and highlight recurring expenses.
- Know what you owe on credit cards or any other debts.
Once your servicer becomes familiar with your situation, they will explain the range of mortgage assistance options that might work for you. Write down as many notes as you can, so you can come back to them later.
If your servicer makes a recommendation, don’t be afraid to ask questions. Use the opportunity to make sure you understand how their suggestion works and why they think it’s best for you. For example:
- “What is the difference between a repayment plan and payment deferral?”
- “How will these mortgage relief options benefit me, both short-term and long-term?”
Tip 3: Confirm next steps
At the end of the call, it’s important to confirm what will happen next. Most likely, your mortgage servicer will ask you to think about their recommendations before choosing which mortgage relief option you prefer.
To help you decide, go back to your notes as many times as needed. Don’t worry — your servicer won’t make any changes to your mortgage loan until they hear from you. But don’t wait too long — it’s good to have a plan in place before any potential debt becomes harder to tackle.
Once you’ve decided on an option that works best for you, keep track of any communication via email, text message, or phone conversation. This record will help you stay on top of the process.
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