The video puts falling behind on a conventional loan in more visual terms, but most importantly, talk to your mortgage lender about specific loss mitigation options. Work directly with him or her to request a “workout packet.”
A secondary home loan lender, like Fannie Mae or Freddie Mac, may have purchased your mortgage loan. Your home lender can follow the appropriate guidelines set by Fannie or Freddie to determine the best option for your situation.
Fannie Mae does not deal directly with the borrower. They work with the mortgage loan lender to determine the loss mitigation program that best fits your needs.
Freddie Mac, like Fannie Mae, will usually only work with the conventional loan servicer. However, if you encounter problems with your mortgage lender during the loss mitigation process you can call customer service for help.
In any loss mitigation situation, it is important to remember a few helpful hints: Explore every reasonable alternative to avoid losing your home, but beware of scams.
For example, watch out for:
- Equity skimming: a buyer offers to repay the mortgage or sell the property if you sign over the deed and move out.
- Phony counseling agencies: offer counseling for a fee when it is often given at no charge.
Remember – don’t sign anything you don’t understand.