We all face challenges, and working together we may be able to identify options to help you avoid foreclosure. If you are experiencing a financial hardship and are concerned you will be unable to meet the repayment terms of your home equity loan, home equity line of credit or mortgage loan, Mechanics Bank may be able to help.
Foreclosure Prevention Alternatives
Eligibility for foreclosure prevention alternatives is determined on a case-by-case basis depending on your current financial situation. It may be possible for us to offer one or more of the following alternatives to prevent the loss of your home through foreclosure. Options that may be available include:
Alternatives
| Foreclosure Alternative
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Description
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| Repayment Plan
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Past due amounts, in addition to your regular payments, are incrementally repaid over a predetermined time period to bring your loan current.
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| Forbearance Agreement
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Halts foreclosure action over a limited period of time to allow for evaluation of repayment alternatives and/or the sale of the property. This agreement may also suspend or reduce payments for a short time.
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| Loan Modification
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Changes the structure of the loan and may include modifications to the interest rate, term and/or payment.
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| Short Sale
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Allows you to avoid foreclosure by selling your home, with Bank approval, for less than the amount owed. You should consult your tax advisor regarding any potential personal tax liability.
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Next Steps
Call us at 800.797.6324 and ask for the Collection/Special Asset Department. Please be prepared to discuss the following:
- The status of your loan obligation
- Your current financial situation and repayment capacity
- The extent of your financial hardship including any known duration
In order for us to determine the best possible way to assist you, we may request certain financial documents that may be applicable to your individual circumstances. This typically includes documents related to your income, expenses, hardship and the property.
Additional Resources
The Department of Housing and Urban Development (HUD) offers homeownership counseling services that may help you avoid foreclosure. Call 800.569.4287 to locate at list of HUD approved credit counseling agencies near you. Additional information is made available by HUD on its website at www.hud.gov.
To help avoid foreclosure and stop foreclosure "rescue" scams, the Federal Deposit Insurance Corporation (FDIC) foreclosure prevention initiative includes outreach, a referral service and resources for consumers.
Beware of Foreclosure Scams
Deals that seem too good to be true almost always are. Foreclosure scams promise to solve your financial problems with little cost or effort, but they may have a big cost in the end. Contact Mechanics Bank or an authorized HUD counselor to discuss real options that may be available to you to help you keep your home.