When you realize you may have issues paying your mortgage, the first call you should make is to your loan servicer (the company listed on your mortgage statement). Why? Because the earlier you reach out, the more options there are for help and you can avoid costly fees and penalties.
Be honest with your loan servicer. They need a clear picture of your financial situation in order to best assist you.
Calling your loan servicer
You’ll need to be well organized and prepared so your loan servicer can better understand your financial position and assess your eligibility for a workout option – whether you desire to stay in your home or exit gracefully. This includes having an explanation of your hardship and your financial documentation at your fingertips.
Be prepared for more than one conversation. Your loan servicer will probably require you to complete a loan workout package and, in many cases, will not be able to provide help until they have your documents signed – so it's important that you complete them as soon as possible.
Preparing for your conversation
To ensure your discussion is as productive as possible, try to have the following readily available:
- Your most recent mortgage statement
- Payslips or other documents showing your household’s monthly pre-tax income
- Your 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 and other debt
- A short description of your financial hardship that is causing – or leading to – being late on your mortgage with supporting proof
- Your monthly budget
To keep you on track, be sure to maintain a record of all your communications with your loan servicer. Consider using our contact log to document your conversations, action items and other important information.
Tools and Resources
Worksheet: Contact Log
As you work with your loan servicer to get help, use this worksheet to log your conversations.
Loan Look-Up Tool
Find out if Freddie Mac owns your loan.