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Foreclosure Information: What You Should Know

If you are having difficulties making your mortgage payments or you are facing foreclosure, we recommend that you take action immediately by calling your lender or a HUD-approved housing counselor (see contact information below).

The sooner your lender knows about your situation, more options may be available to avoid the start of foreclosure and work out a solution. Waiting to take action may put you further behind in payments and increase the possibility of you losing your home. A foreclosure will damage your credit rating, resulting in a negative impact on your ability to borrow money in the future. Please remember, however, your lender is under no obligation to offer or accept a workout program.

You have the right to use a third party, such as a counseling service or attorney, to assist you with this process. Options that may be available to you based on your lender’s evaluation and your individual situation include:

  • Repayment Plan — an agreement with the lender that allows you to catch up with missed mortgage payments by creating a schedule for repaying the past-due amounts
  • Loan Modification — an agreement with the lender that changes the terms of your mortgage to make your payments more affordable (some ways this may be done: extending the number of years on your loan or changing an adjustable rate loan to a fixed rate loan)
  • Forbearance — an agreement with the lender that allows reduced or suspended payments for a short period of time, after which another option will be agreed upon to bring the loan current.

Whether you contact Aerospace Federal Credit Union, other Lenders, or a HUD-certified counselor, there are a few items you will need so you can review your situation with your lender or HUD-certified counselor. These items include:

  • Most recent pay stubs
  • Most recent W-2 or signed tax return
  • Bank statements for the last three months
  • A written statement explaining your current situation and financial hardship
  • A written financial statement detailing your income and expenses

There are many resources available to you that may help you prevent a foreclosure if you take action now. These include:

  • Aerospace Federal Credit Union: We encourage you to contact us directly at (800) 795-2325, option 7 (during business hours) for more information and a loan counselor.
  • Department of Housing and Urban Development (HUD): You may contact HUD’s toll free number, 1 (800) 569–4287, to be put in touch with an HUD–certified counselor. See the Department of Housing and Urban Development at www.hud.gov for a more complete list of Community Counseling Agencies.
  • HOPE NOW Alliance: HOPE NOW is an independent non–profit with a single mission of helping homeowners avoid foreclosure. To contact HOPE NOW, call 1(888) 995-HOPE (4673) to be put in touch with an HUD–approved counselor or visit its website at www.995hope.org.

We know it can be difficult to face financial problems, but the earlier you act, the easier it will be improve your situation. Take responsibility and contact your lender or Aerospace Federal Credit Union to find out about your options and solutions. If you need additional information, please call Aerospace Federal Credit Union at (800) 795-2325.