No matter what your financial situation is, even if you haven’t missed a mortgage payment but are worried you might fall behind on your Third Federal mortgage, we have options for you to consider. You may be eligible to modify your mortgage loan which will lower your payment, making it more affordable. Or, if you’ve missed payments and find yourself buried under late fees and past-due amounts, you may qualify for a temporary (or permanent) solution to help you get your finances back on track and avoid foreclosure.

Whether you want to stay in the home or not, we may be able to help.

Here’s an overview of possible solutions available. At Third Federal, a mortgage consultant can work with you to determine the best option for your particular situation.

Options to Stay in Your Home

Forbearance: A plan through which you make reduced monthly payments for a short period of time. You must demonstrate a financial hardship. A Forbearance gives you time to improve your financial situation and get back on your feet. Once the forbearance period is over, you will enter into a repayment plan in order to cure the delinquency. A forbearance plan is less damaging to your credit score than a foreclosure. A forbearance plan will help you stay in your home and avoid foreclosure.

Repayment Plan: An arrangement made to repay delinquent payments over an extended period of time. A repayment plan is less damaging to your credit score than a foreclosure. You will be required to pay the regular monthly payment plus an additional amount in order to cure the delinquency.

Modification: Third Federal will modify certain terms of the loan including principal balance (to include the delinquency), interest rate, and term. The modification may reduce your monthly mortgage payments to a more affordable payment. A loan modification is less damaging to your credit score than a foreclosure. You must demonstrate a financial hardship and will be required to provide documentation. Third Federal will conduct a financial analysis to determine what terms would yield an appropriate payment while curing the delinquency. During the review process, you are required to make monthly payments on the account. Once the loan is reviewed and found eligible for a modification, Third Federal will report the account current to the credit repositories. Late charges will not accrue on the account as long as the account remains in good standing. A loan modification will help you stay in your home and avoid foreclosure.

Options to Leave Your Home

Homeowners who are struggling with their mortgage payments are facing tough choices—do you stay in a home you may no longer be able to afford or should you try to leave? While it may be difficult to think about leaving your home and making this decision, it may be the best option if other solutions to keep you in your home are no longer viable.

Don’t just walk away from your home. There are better options. The most important thing is to avoid foreclosure—and options may be available to assist you if you are ready to leave your home. Some options may even offer cash incentives to help you move and transition into different housing. Now’s the time to take action and consider the following options, before it’s too late.

Short Sale (aka Pre-foreclosure Sale): A short sale is the sale of a home for less than the balance remaining on your mortgage. If Third Federal agrees to a short sale, you can sell your home and pay off all (or a portion of) your mortgage balance with the proceeds. A Short Sale is designed to eliminate or reduce your remaining mortgage debt so you can start repairing your credit sooner than if you went through a foreclosure

Extenuating circumstances influence whether or not we will discount a loan balance in this manner. These circumstances are usually related to the current real estate market and the borrower's financial situation.

Deed-in-Lieu (Also known as a Voluntary Conveyance): With a Deed-in-Lieu of Foreclosure (DIL), you transfer the ownership of your property to Third Federal in exchange for a release from your loan and payments. This will eliminate or reduce your mortgage debt. A Deed-in-Lieu will allow you to start repairing your credit score sooner than if you went through a foreclosure. In some instances, you may be able to obtain a mortgage to purchase a home sooner than if you went through a foreclosure.

Next Steps

If you feel any of the above options may help you stay in your home, print out and complete both documents below. Please include a detailed explanation of your financial hardship and indicate which of the above options you feel is best for your situation. If you have questions about how to complete the forms, please contact us at 1-866-866-7916 for more information.

Request for Transcript of Tax Return
Uniform Borrower Assistance Form

After you have completed these documents, please fax them to 1-877-906-0857 or mail them to:

• Third Federal Savings & Loan
• Special Servicing Department
• 7007 Broadway Ave.
• Cleveland, Ohio 44105

Once we've received this information, we will review it and contact you to discuss your situation and your options.

If you are struggling with your mortgage payments, you may feel overwhelmed and frustrated. Many homeowners simply don’t know what to do or where to go for assistance. But there are many public resources you can use to find out more about your options.

Fannie Mae

The Fannie Mae website can help you explore your options, and includes many resources for struggling homeowners.
www.knowyouroptions.com

HUD

The U.S. Department of Housing and Urban Development (HUD) sponsors housing counseling agencies throughout the country and counseling is available in many languages.
www.hud.gov/offices/hsg/sfh/hcc/fc/index.cfm

Hardest Hit Funds

The Federal Government established Hardest Hit Fund Programs to provide targeted aid to families in states hit hard by the economic and housing market downturn. Third Federal is a participating Servicer for the programs established in Ohio, Kentucky and Florida.
www.treasury.gov/initiatives/financial-stability/programs/housing-programs/hhf/Pages/default.aspx

Scam artists are stealing millions of dollars from distressed homeowners by promising immediate relief from foreclosure, or demanding cash for counseling services, when HUD-approved counseling agencies provide the same services for FREE! If you receive an offer, information or advice that sounds too good to be true, it probably is. Don't let them take advantage of you, your situation, your house or your money. Remember, help is FREE.

How to Spot a Scam - beware of a company or person who:

• Asks for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage.
• Guarantees they can stop a foreclosure or get your loan modified.
• Advises you to stop paying your mortgage company and pay them instead.
• Pressures you to sign over the deed to your home or sign any paperwork that you haven't had a chance to read, and you don't fully understand.
• Claims to offer "government-approved" or "official government" loan modifications.
• Asks you to release personal financial information online or over the phone and you have not been working with this person and/or do not know them.

How to Report a Scam - do one of the following:
Go to www.preventloanscams.org and fill out the Loan Modification Scam Prevention Network's (LMSPN) complaint form online and get more information on how to fight back. Note: you can also fill out this form and send it to the fax number/e-mail/address (your choice!) on the back of the form.