San Bernardino School Employees Federal Credit Union is aware that current economic conditions have caused many people to be in challenging situations that make it harder for them to be able to meet their financial obligations. If you are facing difficulties making your mortgage payments or are facing foreclosure we recommend that you take action immediately by calling your lender or a HUD-approved housing counselor.

The sooner you act and the sooner your lender knows about your situation, the more options may be available to avoid the start of a foreclosure action on your property. Waiting to take action may put you further behind in payments and increase the possibility of losing your home. A foreclosure will damage your credit rating, resulting in a negative impact on your ability to borrow money in the future.

Whether your home loan is with SBSEFCU or with another institution, most lenders would rather work with you to keep your house than go through a costly foreclosure process. Please remember, however, that your lender is under no obligation to offer or accept a workout program. When you are delinquent on the loan, the default is your responsibility and the lender has the decision whether to offer potential remedies.

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 are:

• Repayment Plan – The lender may accept an agreement to help you get current with missed mortgage payments by creating a schedule for repaying the past-due amounts.
• Loan Modification – The lender may present an option to permanently change the terms of the mortgage to make payments more affordable. An example would be an action to include an extension to the number of years on the loan, or change an adjustable interest rate to a fixed interest rate.
• Forbearance – The lender may allow reduced or suspended payments for a short period of time, after which another option will be agreed upon to bring the loan current
  

• Most recent pay stubs
• Most recent bank statement
• A written statement explaining your financial status
• A written financial statement detailing your income and expenses

Who to Call
There are many resources available to help prevent a foreclosure. These include:

• If your mortgage lender is SBSEFCU: (909) 882-2911
• If your mortgage lender is another institution: Contact your lender directly
• For a HUD (Housing and Urban Development) certified housing counselor: 800-569-4287
• HOPE NOW Alliance (a non-profit that helps people avoid foreclosure) 888-995-HOPE (4673)

Remember the sooner you act the easier it is to improve your situation.