I can't pay my mortgage. What can I do about it? Step 2 of 4
Quick note: I summarized the steps to talk to your bank about your Covid-19 hardship. Step 1 is here. Now on to Step 2...
STEP 2 - Contact your mortgage servicer.
Now that you have figured out who owns your mortgage, it's time to contact your mortgage servicer. Wait... who? Yes, the mortgage servicer... that's the bank or lending institution that manages every single aspect of your mortgage loan. The servicer sends you the mortgage statement every month, collects your escrow, pays your taxes and your insurance, and calls you incessantly when you fall behind in your payments.
The mortgage servicer manages (or services 😀) the account on behalf of the entity that owns the mortgage.
At this stage, you will either call the customer service line for the servicer or you will check the servicer's website or phone application to initiate contact. Many servicers will allow you to make a Covid-19 hardship claim online, without the need to talk to anyone. This has proven a blessing for many homeowners because they save time. If you call the servicer, be ready for longer than usual wait times.
Either by phone or online, be prepared to offer details about your particular hardship, including when you lost your job, how many weekly hours you have lost, and when you expect to be back at work.
You should also be ready to provide the lender with documents proving your hardship, including pay stubs showing less earnings than usual and letters from former employers terminating or furloughing you.
If you are still working but expect to lose your job due to announced layoff or furloughs, you may need to provide further details in the form of a letter from your employer.
Very important: Be patient. There are plenty of homeowners in your same situation. Your wait time on the phone will be longer than usual. Websites may be slow to respond. Don't stop trying until your request for help is acknowledged.
In my next post, I will go over Step 3.
Call me at (407) 443-3833 or visit my page at www.MiltonTheRealtor.com for more information.
* - Don't forget to connect with me on LinkedIn, Facebook (English and Spanish) and Twitter!
STEP 2 - Contact your mortgage servicer.
Now that you have figured out who owns your mortgage, it's time to contact your mortgage servicer. Wait... who? Yes, the mortgage servicer... that's the bank or lending institution that manages every single aspect of your mortgage loan. The servicer sends you the mortgage statement every month, collects your escrow, pays your taxes and your insurance, and calls you incessantly when you fall behind in your payments.
The mortgage servicer manages (or services 😀) the account on behalf of the entity that owns the mortgage.
At this stage, you will either call the customer service line for the servicer or you will check the servicer's website or phone application to initiate contact. Many servicers will allow you to make a Covid-19 hardship claim online, without the need to talk to anyone. This has proven a blessing for many homeowners because they save time. If you call the servicer, be ready for longer than usual wait times.
Either by phone or online, be prepared to offer details about your particular hardship, including when you lost your job, how many weekly hours you have lost, and when you expect to be back at work.
You should also be ready to provide the lender with documents proving your hardship, including pay stubs showing less earnings than usual and letters from former employers terminating or furloughing you.
If you are still working but expect to lose your job due to announced layoff or furloughs, you may need to provide further details in the form of a letter from your employer.
Very important: Be patient. There are plenty of homeowners in your same situation. Your wait time on the phone will be longer than usual. Websites may be slow to respond. Don't stop trying until your request for help is acknowledged.
In my next post, I will go over Step 3.
Call me at (407) 443-3833 or visit my page at www.MiltonTheRealtor.com for more information.
* - Don't forget to connect with me on LinkedIn, Facebook (English and Spanish) and Twitter!
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