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Getting Help to Avoid Foreclosure

Getting Help to Avoid Foreclosure

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

Repayment Plan: Past due amounts, in addition to your regular payments, are incrementally repaid over a predetermined time period to bring your loan current.

Forbearance Agreement: 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.

Loan Modification: Changes the structure of the loan and may include modifications to the interest rate, term and/or payment.

Short Sale: 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.

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

CFPB

The CFPB has resources from multiple federal agencies to help homeowners understand options for relief. Learn what you can do if you have trouble paying your mortgage by visiting the CFPB’s website.

California Mortgage Relief Information

Through the American Rescue Plan Act’s Homeowner Assistance Fund, California will distribute $1 billion in financial assistance to qualified homeowners who have fallen behind on housing payments.  Past due housing payments will be covered in full – up to a maximum of $80,000 per household – with a direct payment to your mortgage servicer.  Funding is provided as a one-time grant that qualified homeowners will not have to repay.  For more information, including plan information, and eligibility and application requirements, please visit the California Mortgage Relief page.

HUD

The Department of Housing and Urban Development (HUD) offers homeownership counseling services that may help you avoid foreclosure. Call 800.569.4287 to locate a list of HUD approved credit counseling agencies near you. Additional information is made available by HUD on its website at www.hud.gov.

FDIC

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.