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Tips for Avoiding Foreclosure

Are you having trouble keeping up with your mortgage payments?Have you received a

notice from your lender asking you to contact them?

• Don't ignore theletters from your lender

• Contact your lenderimmediately

• Contact a HUD-approvedHousing Counseling Agency

• Toll FREE (800)569-4287

• TTY (800) 877-8339

If you are unable to make your mortgage payment:

1. Don't ignore the problem.

The further behind you become, the harder it will be toreinstate your loan and the more

likely that you will lose your house.

2. Contact your lender as soon as you realize that you have aproblem.

Lenders do not want your house. They have options to helpborrowers through difficult

financial times.

3. Open and respond to all mail from your lender.

The first notices you receive will offer good information aboutforeclosure prevention options

that can help you weather financial problems. Later mail mayinclude important notice of

pending legal action. Your failure to open the mail will not bean excuse in foreclosure court.

4. Know your mortgage rights.

Find your loan documents and read them so you know what yourlender may do if you can't

make your payments. Learn about the foreclosure laws andtimeframes in your state (as

every state is different) by contacting the State GovernmentHousing Office.

5. Understand foreclosure prevention options.

Valuable information about foreclosure prevention (also calledloss mitigation) options can

be found on the internet at www.fha.gov/foreclosure/index.cfm.

6. Contact a HUD-approved housing counselor.

The U.S. Department of Housing and Urban Development (HUD) fundsfree or very low cost

housing counseling nationwide. Housing counselors can help youunderstand the law and

your options, organize your finances and represent you innegotiations with your lender if

you need this assistance. Finda HUD-approved housing counselor near you orcall (800)

569-4287 or TTY (800) 877-8339.

7. Prioritize your spending.

After healthcare, keeping your house should be your firstpriority. Review your finances and

see where you can cut spending in order to make your mortgagepayment. Look for optional

expenses-cable TV, memberships, entertainment-that you caneliminate. Delay payments

on credit cards and other 'unsecured' debt until youhave paid your mortgage.

8. Use your assets.

Do you have assets-a second car, jewelry, a whole life insurancepolicy-that you can sell for

cash to help reinstate your loan? Can anyone in your householdget an extra job to bring in

additional income? Even if these efforts don't significantlyincrease your available cash or

your income, they demonstrate to your lender that you arewilling to make sacrifices to

keep your home.

9. Avoid foreclosure prevention companies.

You don't need to pay fees for foreclosure prevention help-usethat money to pay the

mortgage instead. Many for-profit companies will contact youpromising to negotiate with

your lender. While these may be legitimate businesses, they willcharge you a hefty fee

(often two or three month's mortgage payment) for informationand services your lender or

a HUDapproved housing counselor will providefree if you contact them.

10. Don't lose your house to foreclosure recovery scams!

If any firm claims they can stop your foreclosure immediately ifyou sign a document

appointing them to act on your behalf, you may well be signingover the title to your

property and becoming a renter in your own home! Never sign alegal document without

reading and understanding all the terms and getting professionaladvice from an attorney, a

trusted real estate professional, or a HUDapproved housing counselor.

Losing a home can be financially and personally devastating.Here's information to help you

keep your home. Relief may be available.

• People facing moneyproblems:

If you are facing unemployment or have money problems, you maybe able to keep your

home if you know the right steps to take. Read on for importantinformation and links to

local organizations that can help you get through difficulttimes without losing your

home. Government organizations and the mortgage industry workedtogether to provide

this information to help you keep your home.

• Disaster areavictims:

If you live or work in an area declared a disaster by thePresident and the hurricane,

tornado, flood, wildfire, or other natural or man-made eventdamaged your home or

reduced your income, your lender will provide disaster relief:

• For 90 days on anFHA-insured loan. Go to the Disaster Help from the button on

the left of this page.

• In most cases for otherloans.

• Military personneland spouses:

If you or your spouse is on active military duty, you mayqualify for a reduction in your

interest rate resulting in lower payments. Read how the ServicemembersCivil Relief Act

of 2003 (formerly the Soldiers' and Sailors' Civil Relief Act of1940) affects military

homeowners.

Facing Money Problems: - (Top)

Financial problems are most often associated with major lifechanges like:

• Job loss

• Cuts in work hours orovertime

• Retirement

• Illness, injury, ordeath of a family member

• Divorce or separation

If your family is facing any of these issues and you can't payyour bills, look closely at what you

owe and what you earn. Eliminate unnecessary spending and reachout for help if you still can't

make ends meet. Taking action right away can help you protectyour family from the loss of your

home.

Steps to take when you can't pay your mortgage: - (Top)

Contact your lender as soon as you have a problem

Talk to a housing counselor

Prioritize your debts

Explore loan workout solutions with your lender

If keeping your home is not an option

Beware of predatory lending schemes

1. Contact your lender as soon as you have a problem -(Top)

Many people avoid calling lenders about money troubles becausewe:

• Feel embarrasseddiscussing money problems with others

• Believe that if lendersknow we are in trouble, they will automatically rush to a

collection agency or foreclosure (seize property for failure topay a mortgage

debt)

But lenders want to help borrowers keep their homes because:

• Foreclosure is expensivefor lenders, mortgage insurers and investors

• HUD and private mortgageinsurance companies and investors like Freddie Mac

and Fannie Mae require lenders to work aggressively to helpborrowers facing

money problems

Lenders have workout options (choices) to help you and:

• These options work bestwhen your loan is only one or two payments behind

• The farther behind youare on your payments, the fewer options are available

Don't assume that your problems will quickly correct themselves:

• Don't lose valuable timebeing overly optimistic

• Contact your mortgagelender to discuss your circumstances as soon as you

realize that you're unable to make your payments

• Look forward to yourlender being willing to explore many possible solutions,

without guaranteeing any one particular solution

Finding your lender

Check the following sources to contact your lender:

? Your monthly mortgagebilling statement

? Your payment coupon book

Information to have ready when you call

To help you, lenders usually need:

? Your loan account number

? A brief explanation ofyour circumstances

? Recent income documents:

• Pay stubs

• Benefit statements fromSocial Security, disability, unemployment,

retirement, or public assistance

• Tax returns or ayear-to-date profit and loss statement, if selfemployed

• A list of householdexpenses

Expect to have more than one phone conversation with yourlender. Typically,

your lender will mail you a 'loan workout' package.This package contains

information, forms and instructions. If you want to beconsidered for assistance

you must complete the forms fully and truthfully and return themto your lender

quickly. Your lender will review the complete package beforetalking about a

solution with you.

CALL YOUR LENDER TODAY! The sooner you call, the sooner help isavailable.

Don't ignore mail from your lender

If you don't get in touch with your lender, your lender will tryto contact you by mail and

phone soon after you stop making payments. It is very importantthat you respond to mail

and phone calls offering help. If your lender doesn't hear fromyou, they will have to start

legal action leading to foreclosure. This will greatly increasethe cost to bring your loan

current.

Information for families with FHA loans

The FHA provides many alternatives and ways for borrowers to gethelp. These may

include mortgage modifications (changes), special forbearances(allowances), and other

actions you can take to avoid foreclosure.

FHA works closely with customers who have FHA-insured loans. Doyou feel your

lender is not responding to your questions? Do you need helpcontacting your lender?

The FHA is ready to help! Contact us at (800) CALL-FHA.

2. Talk to a housing counselor -(Top)

If you don't feel comfortable talking with your lender, youshould immediately contact a

housing counseling agency and make an appointment with acounselor. Most FHA

counselors are free or cost very little. A counselor can helpyou:

• Review your financialsituation, determine what options are available to you, and

negotiate with your lender

• Learn which of thevarious workout arrangements lenders consider makes the

most sense for you and your family, based on your circumstances

• Call the lender with youor on your behalf to discuss a workout plan

• Protect you from futurecredit problems before you get too far behind on

mortgage payments

• Give you information onservices and programs in your area that provide

financial, legal, medical or other assistance

A good counselor will help you create a monthly budget plan toensure you meet all your

monthly expenses, including your mortgage payment. Your personalfinancial plan will

clearly show how much money you have available to make themortgage payment. This

analysis will help you and your lender determine whether areduced or delayed payment

schedule could help you.

To find out more about HUD-approvedhousing counseling agencies and theirservices,

please call toll free (800) 569-4287 on weekdays between 9:00a.m. and 5:00 p.m.

Eastern Standard Time (6:00 a.m. to 2:00 p.m. Pacific Time). Thesame number can give

you an automated referral to the three housing counselingagencies located closest to you.

Many of these local housing counseling agencies are connectedwith national and

regional housing counseling intermediaries (mediators). Thewebsite for HUD-approved

National and Regional Housing Counseling Intermediaries describesthe full range of

assistance offered and provides maps showing their member'slocations.

3. Prioritize your debts (rank them by importance) -(Top)

You will need a new, tightened budget if you lose a job.Prioritize your bills and pay

those most necessary for your family: food, utilities andshelter.

Failing to pay any of your debts can seriously affect yourcredit rating, but if you stop

making your mortgage payments you could lose your house. Trythese suggestions to

keep your home:

• Whenever possible, useany income available after paying for food and utilities to

pay your monthly mortgage payments.

• If your employmentincome has stopped or been reduced, first consider getting rid

of or cutting back on other expenses (such as dining out,entertainment, cable, or

even telephone services).

• If you still do not haveenough income, consider cashing out other financial

resources like stocks, savings accounts, or personal propertythat may have value

like a boat or a second car.

• Take any responsibleaction that will save cash.

Besides speaking with your lender, you may want to contact anonprofit consumer credit

counseling agency that specializes in helping restructure creditpayments. Credit

counselors can often reduce your monthly bills by negotiatinglower payments or longterm

payment plans with your creditors. Trustworthy credit counselingagencies provide

their services free of charge or for a small monthly fee tied toa repayment plan. Beware

of credit counseling agencies that offer counseling for a largeupfront fee or donation.

For consumer debt advice, contact www.debtadvice.org/

When you call a credit counseling agency, they will ask you toprovide current

information about your income and expenses. Make sure you ask ifthe agency has a

charge before you sign any documents!

Preserve your good credit

Do not underestimate (misjudge) how important it is to keep yourgood

credit. Your future ability to purchase items, rent or buy ahome, and do

other things often requires a credit check. Consumer creditagencies and

your lender can help you explore solutions to keep your creditrating from

getting blemished.

Maintaining good credit is even important for job hunters. Whenyou

apply for a job, the employer probably will check your creditreport to

determine whether:

• You have been sued

• You have filed forbankruptcy

• You have trouble payingyour bills

4. Explore loan workout solutions with your lender -(Top)

First and foremost, if you can keep your mortgage current, doso.

But if you find you are unable to make your mortgage payments,you might qualify for a

loan workout option. Check with your lender to see which optionmay be available. Some

options may not apply to your loan if it is not insured by FHA.

If your problem is temporary - call your lender to discuss thesepossibilities:

• Reinstatement: Yourlender is always willing to discuss accepting the total

amount owed in a lump sum by a specific date. Forbearance mayaccompany this

option.

• Forbearance: Yourlender may allow you to reduce or suspend payments for a

short period of time and then agree to another option to bringyour loan current. A

forbearance option is often combined with a reinstatement whenyou know you

will have enough money to bring the account current at aspecific time. The

money might come from a hiring bonus, investment, insurancesettlement, or tax

refund.

• Repayment plan: Youmay be able to get an agreement to resume making your

regular monthly payments, plus a portion of the past duepayments each month

until you are caught up.

If it appears that your situation is long-term or willpermanently affect your ability

to bring your account current - call your lender to discussoptions:

• Mortgagemodification: If you can make paymentson your loan, but don't have

enough money to bring your account current or you can't affordyour current

payment, your lender may be able to change the terms of youroriginal loan to

make the payments more affordable. Your loan could bepermanently changed in

one or more of the following ways:

• Adding the missedpayments to the existing loan balance.

• Changing the interestrate, including making an adjustable rate into a fixed

rate.

• Extending the number ofyears you have to repay.

• Partial Claim: Ifyour mortgage is insured, your lender might help you get a onetime

interest-free loan from your mortgage guarantor to bring youraccount

current. You may be allowed to wait several years beforerepaying this loan. You

qualify for an FHA partial claim if:

• Your loan is between 4and 12 months delinquen

• You are able to beginmaking full mortgage payments again

When your lender files a partial claim, HUD will pay your lenderthe amount necessary

to bring your mortgage current. You must sign a promissory note,and a lien will be

placed on your property until the promissory note is paid infull.

The promissory note is interest-free and is due when you pay offthe first mortgage or

when you sell the property.

If keeping your home is not an option - call your lender todiscuss these possibilities:

- (Top)

• Sale: Ifyou can no longer afford your home, your lender will usually give you a

specific amount of time to find a purchaser and pay off thetotal amount owed.

You will be expected to use the services of a real estateprofessional who can

aggressively market the property.

• Pre-foreclosure saleor short payoff: If you can't sell theproperty for the full

amount of the loan, your lender may accept less than the amountowed. Financial

help may also be available to pay other lien holders and/or helptowards some

moving costs. You may qualify if:

• The loan is at least 2months delinquent

• You (or your real estateprofessional) can sell the house within 3 to 5

months

• A new appraisal(obtained by your lender) shows that the value of your

home meets HUD program guidelines

• Assumption: Aqualified buyer may be allowed to take over your mortgage, even

if your original loan documents state that it is non-assumable.

• Deed-in-lieu offoreclosure: As a last resort, you'give back' your property and

the debt is forgiven. This will not save your house, but it isless damaging to your

credit rating. This option might sound like the easiest way out,but it has

limitations:

• You usually have to tryto sell the home for its fair market value for at

least 90 days before the lender will consider this option

• This option may not beavailable if you have other liens, suc h as other

creditor judgments, second mortgages, and IRS or state tax liens

Resources for finding a real estate agent and selling your home

If you need to sell your home, you'll have to answer manyquestions. You'll need to find how

much your house is actually worth, and you'll have to find areal estate agent you are comfortable

with. The following resources may help:

• NationalAssociation of Realtors

• NationalAssociation of Real Estate Brokers

• InternationalReal Estate Digest

• NationalAssociation of Hispanic Real Estate Professionals

• The HomeStore

If you have an FHA-insured loan and your lender is notresponsive

Your lender has to follow FHA servicing guidelines andregulations for FHA-insured loans. If

your lender is not cooperative, contact FHA's National ServicingCenter at toll free (888) 297-

8685 or via email hsg-lossmit@hud.gov.HUD does not oversee VA or conventional loans.

Beware of predatory lending schemes -(Top)

Most mortgage lenders are trustworthy and provide a valuableservice by allowing families to

own a home without saving enough money to buy it outright. Butdishonest or 'predatory'

lenders do exist and engage in lending practices that increasethe chances that a borrower will

lose a home to foreclosure. Beware especially of those who makehigh risk second mortgages.

Other abusive practices include:

• Making a mortgage loanto an individual who does not have the income to repay it

• Charging excessiveinterest, points and fees

• Repeatedly refinancing aloan without providing any real value to the borrower

Borrowers facing unemployment and/or foreclosure are oftentargets of predatory lenders

because they are desperate to find any 'solution'.

Homeowners receive many refinance offers in the mail saying theyare 'pre-approved' for credit

based on the equity in their homes. Borrowing against your housemay seem attractive when you

are struggling to pay your mortgage and other bills. But stopand think about this: if you can't

make your current payments, increasing your debt will make itharder to keep your home, even if

you get some temporary cash.

Beware of scams

• Equity skimming: In thistype of scam a 'buyer' approaches you offering to repay the

mortgage or sell the property if you sign over the deed and moveout - usually leaving

you with the debt and no house. Signing over your deed does notnecessarily relieve you

of the responsibility of paying the loan.

• Phony counselingagencies: charging for counseling that is often free of charge. If you

have any doubt about paying for such services, call aHUD-approved foreclosure housing

counseling agency toll freeat (800) 569-4287 orTDD (800) 877-8339 beforeyou pay

anyone or sign anything.

• Do not sign anything youdo not understand. It is your right and duty to ask questions

• Information is your bestdefense against becoming a victim of predatory lending,

especially for a desperate homeowner

Where to report suspected predatory lending

Homeowners can either visit the StopMortgage Fraud website or call toll free(800) 348-3931 to

get information on what steps to take to file a complaint.Homeowners who call will also receive

a booklet containing information found on the website.

For more information about predatory lending go to:

• FreddieMAC's Predatory Lending

• FreddieMAC's 'Don't Borrow Trouble'

Common Questions - (Top)

What happens when I miss my mortgage payments?

What should I do?

Who is my lender? How do I make contact?

I don't remember what type of mortgage I have.

Do I need to keep living in my house to qualify for assistance?

My employer has already announced layoffs

What are the key points to remember?

What precautions can I take?

Will I be responsible for any out-of-pocket expenses?

What happens when I miss my mortgage payments? -(Top)

Foreclosure may occur. This means your lender can legallyrepossess (take over) your home.

When this happens, you must move out of your house. If yourproperty is worth less than the

total amount you owe on your mortgage loan, a deficiencyjudgment could be pursued, meaning

you would not only lose your home, you also would owe HUD money.

Both foreclosures and deficiency judgments could seriouslyaffect your ability to qualify for

credit in the future. So you should avoid foreclosure if at allpossible.

What should I do? - (Top)

• Do not ignore lettersfrom your lender. If you are having problems making your

payments, call or write to your lender's loss mitigationdepartment immediately. Explain

your situation. Be prepared to provide financial information,such as you-r monthly

income and expenses. Without this information, they may not beable to help.

• Stay in your home fornow. You may not qualify for assistance if you abandon your

property.

• Contact a HUD-approvedforeclosure housingcounseling agency. Call toll free 1-800-

569-4287 or TDD(800) 877-8339 for the housingcounseling agency nearest you. These

agencies are valuable resources. They have information onservices and programs offered

by government agencies and private and community organizationsthat might be able to

help you. The housing counseling agency may also offer creditcounseling. These

services are usually free of charge.

Who is my lender? How do I make contact?-(Top)

Look at your monthly mortgage coupons or billing statements forthe lender's name and contact

information.

I don't remember what type of mortgage I have. How can I findthis information? - (Top)

Look on the original mortgage documents or call your mortgagelender.

Do I need to keep living in my house to qualify for assistance? -(Top)

Usually yes, but call your lender to discuss your specificcircumstances and get advice on options

that may be available.

My employer has already announced layoffs in the coming month.What can I do now? -

(Top)

You have started learning about available options here. Now,figure out if a layoff will make it

hard for your family to make your mortgage payments. If so,consider other resources you have

to pay your mortgage. Review your spending habits and see whereyou can reduce spending. If

you have a lot of other debt, consider contacting a nonprofit,consumer credit counseling agency.

Take advantage of any help your employer offers. If you stillbelieve you will have trouble

making your mortgage payments, contact your lender right away.

What are the key points to remember? -(Top)

1. Don't lose your home and damage your credit history

2. Call or write your mortgage lender immediately and be honestabout your financial

situation

3. Stay in your home to make sure you qualify for assistance

4. Arrange an appointment with a HUD-approvedhousing counselor to explore your

options toll free at (800)569-4287 or TDD(800) 877-8339

5. Cooperate with the counselor or lender trying to help you

6. Explore every alternative to keep your home

7. Beware of scams

8. Never sign anything you don't understand. And remember thatsigning over the deed to

someone else does not necessarily relieve you of your loanobligation

9. Act now. Delaying can't help. If you do nothing, you willlose your home and your good

credit rating!

What precautions can I take? -(Top)

These precautions can help you avoid being 'taken' bya scam artist:

• Don't sign any papersyou don't fully understand.

• Make sure you get all'promises' in writing.

• Beware of any salescontract that assumes the loan where you are not formally released

from liability (responsibility) for your mortgage debt.

• Check with a lawyer oryour mortgage company before entering into any deal involving

your home.

If you're selling the house yourself to avoid foreclosure, checkto see if there are any complaints

against the prospective buyer. You can contact your state'sAttorney General, the State Real

Estate Commission, or the local District Attorney's ConsumerFraud Unit for this type of

information.

Will I be responsible for any out-of-pocket expenses if I amapproved for a workout

option? - (Top)

You may have to pay expenses such as recording fees for a loanmodification. Because every

situation is different, contact your lender for moreinformation. But, if a lender has no contact

with you and has to start foreclosure, you may have to pay veryhigh legal fees. To avoid this,

call your lender as soon as you realize you might have trouble.

Mortgage lenders

The mortgage lenders listed below have voluntarily joined thefederal government to assist

homeowners who are concerned about the future or have suffereddue to recent changes in the

economy. If your lender is listed here, you can help protectyour home by contacting them

immediately!

Lender Phone #1 Phone #2

Bank of America (800) 846-2222 (716) 635-2264

Chase Home Finance (800) 848-9136

Chase Home Finance (800) 526-0072

ext. 533 (800) 527-3040

CitiMortgage (800) 926-9783

Countrywide (800) 763-1255 (800) 669-4576

HSBC Mortgage Corporation (800)338-6441 (888) 648-3124

Irwin Mortgage Corporation (888) 444-6446

James B. Nutter & Company (800) 315-7334

Midland Mortgage (800) 552-3000 (800) 654-4566

Mortgage Service (800) 449-8767

National City Mortgage (800)367-9305

Nationwide Advantage Mortgage (800) 356-3442

ext. 6002

Principal Residential Mortgage, Inc. (800) 367-6448 (800)962-4450

Wells Fargo Mortgage (800) 766-0987

Wendover Financial Services Corporation (888) 934-1081 (800)436-1022

Washington Mutual Home Loans, Inc. (866) 926-8937 (800) 254-3677

This information is provide for you by the joint efforts ofHUD/FHA, Department of Veterans

Affairs, Department of Labor, Fannie Mae, Freddie Mac, membersof the Mortgage Industry-atlarge,

and other industry participants.

Servicemembers Civil Relief Act (SCRA) Common Questions - (Top)

Who is eligible?

Am I entitled to debt payment relief?

Is the interest rate limitation automatic?

Am I eligible even if I can afford to pay my mortgage at ahigher interest rate?

What if I can't afford to pay my mortgage even at the lowerrate?

Am I protected against foreclosure?

What information do I need to provide to my lender?

Will my payments change later?

Will I need to pay back the interest rate 'subsidy' ata later date?

How long does the benefit last? Does the period begin and endwith my tour of duty?

How can I learn more about relief available to active dutymilitary personnel?

Reservists, guardsmen and other military personnel can findanswers to questions about

mortgage payment relief and protection from foreclosure providedby the Servicemembers Civil

Relief Act of 2003 (formerlyThe Soldiers' and Sailors' Civil Relief Act of 1940).

Who is eligible? - (Top)

The Act applies to active duty military personnel who had amortgage obligation before

enlistment or before being ordered to active duty. Thisincludes:

• Members of the Army,Navy, Marine Corps, Air Force, Coast Guard

• Commissioned officers ofthe Public Health Service and the National Oceanic and

Atmospheric Administration engaged in active service

• Reservists ordered toreport for military service

• People ordered to reportfor induction (training) under the Military Selective Service Act

• Guardsmen called toactive service for more than 30 consecutive days.

In limited situations, dependents of servicemembers are alsoentitled to protections.

Am I entitled to debt payment relief? -(Top)

The Act limits interest that may be charged on mortgages takenout by a servicemember

(including debts incurred jointly with a spouse) before he orshe entered into active military

service. At your request, lenders must reduce the interest rateto no more than 6% per year during

the period of active military service and recalculate yourpayments to reflect the lower rate. This

provision applies to both conventional and government-insuredmortgages.

Is the interest rate limitation automatic? -(Top)

No. To ask for this temporary interest rate reduction, you mustsubmit a written request to your

mortgage lender and include a copy of your military orders. Therequest may be submitted as

soon as the orders are issued, but no later than 180 days afterthe date of your release from active

duty military service.

Am I eligible even if I can afford to pay my mortgage at ahigher interest rate? - (Top)

If a mortgage lender believes that military service has notaffected your ability to repay your

mortgage, they have the right to ask a court to grant relieffrom the interest rate reduction. This is

does not happen very often.

What if I can't afford to pay my mortgage even at the lowerrate?- (Top)

Your mortgage lender may let you stop paying the principalamount due on your loan during

active duty service. Lenders are not required to do this butthey generally try to work with

servicemembers to keep them in their homes. You will still owethis amount, but will not have to

repay it until after you complete active duty service.

Most lenders also have other programs to assist borrowers whocan't make their mortgage

payments. If you or your spouse finds yourself in this positionat any time before or after active

duty service, contact your lender immediately and ask about lossmitigation options. If you have

an FHA-insured loan and are having difficulty making mortgagepayments, you may also be

eligible for special forbearance and other loss mitigationoptions.

Am I protected against foreclosure? -(Top)

Mortgage lenders may not foreclose while you are on active dutyor within 90 days after military

service without court approval., A lender would be required toshow in court that your ability to

repay the debt was not affected by your military service.

What information do I need to provide to my lender? -(Top)

When you or your representative contacts your mortgage lender,you should provide the

following information:

• Notice that you havebeen called to active duty

• A copy of the ordersfrom the military notifying you of your activation

• Your FHA case number

• Evidence that the debtprecedes your activation date

HUD has reminded FHA lenders of their obligation to follow theSCRA. When notified that a

borrower is on active military duty, an FHA lender must informthe borrower or representative of

the adjusted payment amount due, provide adjusted coupons orbillings, and ensure adjusted

payments are not considered insufficient payments.

Will my payments change later? Will I need to pay back theinterest rate 'subsidy' at a

later date? - (Top)

The change in interest rate is not a subsidy. Interest in excessof 6% per year that would

otherwise have been charged is forgiven. However, the reductionin the interest rate and monthly

payment amount only applies during the period of active duty.Once the period of active military

service ends, the interest rate will revert back to the originalinterest rate, and payments will be

recalculated accordingly.

How long does the benefit last? Does the period begin and endwith my tour of duty? -

(Top)

Interest rate reductions are only for the period of activemilitary service. Other benefits, such as

postponement (delaying) of monthly principal payments on theloan and restrictions on

foreclosure, may begin immediately upon assignment to activemilitary service and end on the

third month following the term of active duty assignment.

How can I learn more about relief available to active dutymilitary personnel? - (Top)

Servicemembers who have questions about the SCRA or theprotections they may be entitled to,

can contact their unit judge advocate or installation legalassistance officer. Dependents of

servicemembers can also contact or visit local military legalassistance offices where they live. A

military legal assistance office locator for each branch of thearmed forces is available at

www.legalassistance.law.af.mil/content/locator.php

 

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