FHA Loans
- Repayment Plan – This option is for borrowers owing 4 payments or less, or in special circumstances up to 12 delinquent payments. If your hardship has ended and you have surplus income to pay towards your mortgage, this option allows up to 24 months to increase your mortgage payment to pay back the missed payments. If you are unable to successfully complete this option, you will be reviewed for additional Loss Mitigation options.
- Forbearance – This option is for borrowers facing a continued hardship and unable to resume monthly payments. Forbearance is a 3-month agreement that requires a $10 monthly payment and a regular monthly check-in with a loss mitigation agent. Additional Forbearance agreements may be granted for extended short-term ongoing hardships but may not extend beyond 12 months of delinquency. Once income has returned, additional loss mitigation options will be reviewed to help resolve the delinquency.
- Permanent Home Retention Options – Is for borrowers 61+ days delinquent whose hardship has ended and ready to resume monthly payments. These options require successful completion of a 3-month Trial Payment Plan (TPP). The agent will assess if your payment is affordable or if you need a lower payment. Once a Permanent Home Retention option is completed, you can not participate in another Permanent Home Retention option for at least 24 months.
- Affordable Payment – If your regular monthly payment is affordable but you need help catching up, you will be reviewed for a Partial Claim and a 30-year Modification. The option that offers you the lowest payment will be offered. If you do not successfully complete the trial payment plan, you will be reviewed for the non-affordable payment option.
- Non-Affordable Payment – If your regular monthly payment is no longer affordable, you will be reviewed for the lowest possible payment option up to a 40-year Modification and Partial Claim or a Payment Supplement Partial Claim. The option that offers the lowest payment will be offered. If you do not successfully complete the trial payment plan, we will not have any additional home retention options to help bring your loan current.
A Partial Claim is an interest free loan from FHA used as a stand-alone option to bring your account current or in combination with a modification to buy down your principal balance. This is a secured loan that requires signing a Note and Deed of Trust, notarizing the Deed of Trust, and sending the Deed of Trust for recording that creates a junior lien on your home. This loan has no interest and is not due until you sell the home, refinance, or payoff your FHA insured first lien mortgage.
A Modification extends the term of your mortgage back to 30 years or 40 years and may offer a lower interest rate to reduce your mortgage payment. The delinquent interest, escrow shortage, and fees owed are added back into the principal balance and then amortized over 30 or 40 years to bring your account current.
A Partial Claim Payment Supplement provides additional claim funds and is held in a Subsidy balance on your loan to be used towards a portion of your principal payment each month for 36-months (3 years) to provide a lower monthly mortgage payment.
- Outside the Waterfall (OWL) Modification – If VMLS has not had contact with your during your delinquency, we will complete a Modification review of your loan prior to referring to Foreclosure. If a Modification will provide at least a $1 reduction in the Principal & Interest portion of your payment, this option will be offered. This option requires successful completion of at least 3 trial payments, and a signed and notarized modification agreement.
USDA Loans
- Informal Repayment Plan – If you can pay extra in the next 3 months to bring your loan current, a mortgage specialist can offer a verbal informal forbearance agreement. This option does not require a loss mitigation package and does not require a signed agreement. This option will increase your monthly payment for a short time.
- Special Forbearance – If you have a temporary loss of income, this option allows a temporary $10 monthly payment and monthly check-in for up to 12 months from the mortgage loan due date. This does not resolve your payment delinquency but allows time to regain income. This option requires a full loss mitigation package, proof of unemployment, and a signed agreement. Once income has returned, additional loss mitigation options will be reviewed to help resolve the delinquency.
- Repayment Plan – If you have faced a hardship but now have surplus income to pay towards your mortgage, this option allows up to 12 to 18 months to increase your mortgage payment to pay back the missed payments. This option requires a full loss mitigation package and a signed agreement.
- Loan Modification – If you have faced a hardship and have a permanent reduced income or increased expenses or you do not have enough surplus income to complete a repayment plan successfully, this option offers a permanent change to your mortgage terms adding the overdue payments to your loan balance. A modification may reduce your interest rate and extend your term to 30 or 40 years to create ongoing payment relief. This option requires a full loss mitigation package, a signed trial payment plan agreement, successful completion of at least 3 trial payments, and a signed and notarized modification agreement.
- Mortgage Recovery Advance (MRA) – This option can be used in combination with a loan modification or as a stand-alone option. USDA offers an interest free loan that does not get repaid until you pay off your mortgage with VMLS. USDA provides the funds to bring the loan current and, if needed, to buy down the principal balance making your mortgage payment more affordable. This option requires a full loss mitigation package, a signed trial payment plan agreement, successful completion of at least 3 trial payments, and a signed MRA Agreement for promise of repayment. This balance will be shown on your monthly statements and online payment portal as an Advance.
- No Document Final Offer Modification – If VMLS has not received a request for Loss Mitigation from you, we will complete a no documentation Modification review of your loan prior to referring to Foreclosure. If a Modification provides a reduction in the Principal & Interest portion of your payment, this option will be offered. This option requires a signed trial payment plan agreement, successful completion of at least 3 trial payments, and a signed and notarized modification agreement.
VA Loans
- Special Forbearance – This option is for borrowers facing a continued hardship and unable to resume monthly payments. Forbearance is an agreement that requires a $10 monthly payment and a regular monthly check-in with a loss mitigation agent. Additional Forbearance agreements may be granted for extended short-term ongoing hardships but may not extend beyond 12 months of delinquency. Once income has returned, additional loss mitigation options will be reviewed to help resolve the delinquency.
- Repayment Plan – If you have faced a hardship but now have surplus income to pay towards your mortgage, this option allows up to 12 to 18 months to increase your mortgage payment to pay back the missed payments. If you are unable to successfully complete this option, you will be reviewed for additional Loss Mitigation options.
- Loan Modification – If you have faced a hardship and have a permanent reduced income or increased expenses or you do not have enough surplus income to complete a repayment plan successfully, this option offers a permanent change to your mortgage terms adding the overdue payments to your loan balance. A modification may reduce your interest rate and extend your term to 30 or 40 years to create ongoing payment relief. This option requires successful completion of at least 3 trial payments, and a signed and notarized modification agreement.
Conventional Freddie Mac Loans
- Forbearance – If you have a temporary loss of income, this option allows a temporary $10 monthly payment and monthly check-in for up to 12 months from the mortgage loan due date. This does not resolve your payment delinquency but allows time to regain income. This option requires a full loss mitigation package, proof of unemployment, and a signed agreement. Once income has returned, additional loss mitigation options will be reviewed to help resolve the delinquency.
- Repayment Plan – If you have faced a hardship but now have surplus income to pay towards your mortgage, this option allows up to 12 to 18 months to increase your mortgage payment to pay back the missed payments. This option requires a full loss mitigation package and a signed agreement.
- Payment Deferral – If your regular monthly payment is affordable but you need help catching up, this option allows 2 to 6 months of missed payments to be added to the end of your mortgage. This option requires a full loss mitigation package and a signed agreement.
- Flex Loan Modification – Is for borrowers 61+ days delinquent whose hardship has ended and ready to resume monthly payments. A modification may reduce your interest rate and extend your term to 30 or 40 years to create ongoing payment relief. This option requires a full loss mitigation package, a signed trial payment plan agreement, successful completion of at least 3 trial payments, and a signed and notarized modification agreement.
- No Doc Flex Loan Modification – If VMLS has not received a request for Loss Mitigation from you, we will complete a no documentation Modification review of your loan prior to referring to Foreclosure. If a Modification will provide a 20% reduction in the Principal & Interest portion of your payment, this option will be offered. This option requires a signed trial payment plan agreement, successful completion of at least 3 trial payments, and a signed and notarized modification agreement.
Conventional Loans
- Forbearance – If you have a temporary loss of income, this option allows a temporary $10 monthly payment and monthly check-in for up to 12 months from the mortgage loan due date. This does not resolve your payment delinquency but allows time to regain income. This option requires a full loss mitigation package, proof of unemployment, and a signed agreement. Once income has returned, additional loss mitigation options will be reviewed to help resolve the delinquency.
- Repayment Plan – If you have faced a hardship but now have surplus income to pay towards your mortgage, this option allows up to 12 to 18 months to increase your mortgage payment to pay back the missed payments. This option requires a full loss mitigation package and a signed agreement.
- Loan Modification – Is for borrowers 61+ days delinquent whose hardship has ended and ready to resume monthly payments. A modification may reduce your interest rate and extend your term to 30 years to create ongoing payment relief. This option requires a full loss mitigation package, a signed trial payment plan agreement, successful completion of at least 3 trial payments, and a signed and notarized modification agreement.
Non-Retention Loss Mitigation Options
If you do not qualify for a Home Retention Loss Mitigation option, you can request to participate in a Non-Retention option. The first step is to contact a Realtor to discuss selling your home. Request a Payoff on all liens against your property. We hold your first lien, and if you received a THDA Down Payment Assistance loan we also hold the jr lien. Call or email custserv@volservicing.com to request your payoff. Your Realtor can help determine if you have equity or if you will need to participate in a Short Sale. Contact VMLS prior to listing the home for sale if you will need to participate in a Short Sale.
- Short Sale – Is for borrowers listing their home for sale but they do not have enough equity to payoff the liens owed. Prior to listing the property for sale, VMLS will conduct review and if qualified will offer an Approval to Participate that includes an approved listing price and approved price reductions. Once you receive an offer to be considered for purchase, submit the offer for approval. A short sale process can take longer than a traditional sale due to the additional approval steps. If you would like us to work directly with your Realtor, submit a signed 3rd Party Authorization.
- Deed In Lieu of Foreclosure – Is for borrowers unsuccessful in selling their home during the Short Sale program and want to avoid the foreclosure process. A Deed In Lieu (DIL) will require jr lien holders to release their liens prior to completing a DIL. The DIL is a signed, notarized, and recorded document transferring the ownership of the home to THDA. Prior to transferring ownership to THDA, VMLS must approve you to participate. By participating in this program, you are waiving rights to any equity in the property.
