Why Contact Your Lender/Servicer?

Your loan servicer is the company that handles collection of payments and the day-to-day tasks involved with other mortgage-related processes like collection and payment of homeowner's insurance and property tax payments. Many servicers understand that individuals and families can face temporary job loss, serious illness, or other major life events that can impact their ability to pay their mortgage.

It is important that you contact your mortgage servicer to explain your situation if you anticipate any difficulty in making your mortgage payment. Many servicers are willing to work with you if you contact them immediately. Be sure to have information prepared for the conversation so that the company is best able to assist you when you call.

To Determine who Your Mortgage Servicer is:
Check your monthly mortgage billing statement
Check your phone book

To find out how to reach your servicer:
Check your monthly mortgage billing statement
Check your phone book
Search on the Internet 

Contact your servicer and ask to speak with the loss mitigation department.

Make sure they can tell you who (which bank or investment company) OWNS your loan.  Many times mortgage loans are sold and resold to investors.  Only the company that OWNS your loan or has a legitimate Lien on your property can initiate Foreclosure proceedings.

Information to Have Ready When You Call:
Your loan account number
A brief description of your circumstances
Recent income documents such as:
   Pay stubs 
   Benefit statements from Social Security, disability, unemployment, retirement or public assistance
   If self-employed, have your tax returns or a year-to-date profit and loss statement available for reference
   List of household expenses

Tips for Avoiding Foreclosure: http://www.hud.gov/foreclosure/

Be prepared to answer the following questions:
What is your loan account number?
What caused you to miss your mortgage payment(s)?
Do you have any documents to back up your explanation for falling behind?
How have you tried to resolve the problem?
Is your problem temporary, long-term or permanent?
What changes in your situation do you see in the short term and in the long term?
What other financial issues may be stopping you from getting back on track with your mortgage?
What would you like to see happen?
Do you want to keep the home?
What type of payment arrangement would be feasible for you?

What to expect:
Expect to have more than one telephone conversation with your loan servicer.
Your loan servicer will usually mail you a "loan workout" package containing information, forms and instructions.
Complete the forms and return them to your mortgage servicer quickly if you want to be considered for assistance.
The completed package will be reviewed before the servicer talks with you about a solution.
If you do not hear back from the loan servicer in a reasonable amount of time after submitting the workout package (generally, 7-10 days), contact your loan servicer again and continue to follow up.

What to do when working with your servicer:
Keep notes of all your communications with the loan servicer including:

• date and time of contact
• nature of contact (face-to-face, phone, e-mail, fax, or mail)
• first and last name of the representative
• the outcome

If you make any oral request to your loan servicer, follow your request up in writing.
Send your letter by certified mail, return receipt requested.  This will verify that your loan servicer received your correspondence (request).
Keep copies of your letter and any enclosures.
Meet all deadlines the loan servicer gives you.
Stay in your home during the process because you may not qualify for certain types of assistance if you move out.
If you do not hear back from the loan servicer in a reasonable amount of time after communicating with the company, contact them again.
Continue to follow up - do not assume someone else is doing the work for you.