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.
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
Mortgage Assistance Application
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.