Working with Your Lender
When you call your lender to discuss options to make your payments more affordable or to avoid foreclosure, it is important that you are well prepared and have an idea of what to expect.
As you work with your lender, be sure to use our Lender Contact Log to help you document important information from your discussions, including points of contact and action items.
Being well organized and prepared will help your lender better understand your financial position and assess your qualification for workout options, and will likely result in a more productive conversation.
- Be sure to have your account information handy and be prepared to provide an explanation of why you are unable to pay your mortgage payment, or why you anticipate trouble in the near future. Is there a loss or reduction in income? Is there a medical emergency?
- If you don't have a budget, now is the time to know exactly what you are spending each month. If you can, assemble your monthly budget and have it on hand.
- You'll also need to have the following documents readily available:
- Your most recent monthly mortgage statement
- Pay stubs or other documents showing your household's monthly pre-tax income
- Most recent tax return
- Second loan or home equity line of credit statements
- Account balances and minimum monthly payments on credit cards, car loans, student loans or other debt
- A short, concise description of the financial hardship that is causing – or leading to – a mortgage delinquency with supporting proof
What to Expect
Be prepared for more than one conversation. Your lender may require you to complete a loan workout package. It is important that you complete it as soon as you receive it because in some cases the lender cannot proceed to the next step without the completed and signed documents.
Questions to ask your lender:
- How much time do you allow to complete a workout?
- What are your obligations under the workout package?
- What are the specifics? Be sure to ask what is due and when.
- Will a foreclosure sale of your property be put on hold while your lender looks at the possibility of a workout package?
If you are having trouble reaching your lender, be patient and diligent. Call volume is high and lenders are working hard to get to every call as quickly as possible.
Your lender wants to help you and should be your first call for assistance. However, if you still have questions or need additional guidance after talking to your lender, you may contact a Freddie Mac representative at 800-373-3343 and selecting option #2.
Tools and Resources
Steps to Get Started with HARP
Refinance with HARP
HARP is helping millions refinance into today's low interest rates – even with little or no equity.