Financial Hardship Mortgage Assistance Options
We understand that dealing with financial hardship can be exceedingly stressful and difficult. Personal financial issues can cause some borrowers to have difficulty making their monthly mortgage payment on time. In some cases, borrowers may face the unfortunate circumstance of losing their home to foreclosure. That’s why we’ve assembled this guide to our mortgage assistance program options.
Unexpected life events can make it difficult to make a monthly mortgage payment. Paying a mortgage on time is critical to be a successful homeowner. Delinquent payments can negatively affect credit scores and put you at risk of foreclosure. Santander Bank understands how stressful this can be, so we’ve provided this list of helpful resources.
The most important step is to contact your lender as soon as you can.
If your lender is Santander Bank: Contact a Customer Service Center Advisor at 855-241-5699 from 8 a.m. to 5 p.m. ET, Monday through Friday, to learn about the different mortgage assistance programs we offer. We can work with you to determine the best option for your unique situation. Even if you have not fallen behind on your payments, but are facing financial difficulties, it is never too early to reach out. Our team is on hand to assist you with information, mortgage assistance programs and options that can help.
Avoiding Foreclosure: Commonly Used Resources
Some of the most commonly used resources to avoid foreclosure are:
- Repayment Plan
- Temporary Loan Forbearance Plan
- Loan Modification
- Short Sale
- Deed-in-Lieu of Foreclosure
1. Repayment plan: A repayment plan works best for borrowers who have missed one or more payments, due to an unexpected expense, but otherwise have a steady source of income that allows them to make their future payments in full and on time. This is also called an income driven repayment plan.
An income driven repayment plan allows you to take the amount you are behind on your mortgage, including any late payment fees and penalties, and pay it off a little at a time. This is done by increasing your monthly mortgage payment in small amounts, when the repayment plan is first created.
2. Temporary loan forbearance: Temporary forbearance plans work best for borrowers who have recently faced or are facing unexpected hardships such as unemployment, divorce, death, disaster, or disability. This option may reduce or suspend your mortgage payment for a specific time period to allow you to recover from this hardship, to resolve loss of employment or make better use of your resources, allowing you to pursue a permanent hardship solution. This is also often called loan forbearance. While temporary, loan forbearance can help financial recovery after one of these events.
3. Loan modification: A loan modification adjusts the terms of your mortgage, such as your interest rate or term, in order to bring the loan current, and if possible, reduce your monthly payment. Loan modification is one of the most popular forms of mortgage assistance.
4. Short sale: In a short sale, you sell your home for less than the amount you still owe on your loan. A short sale would allow you to sell your home for less than the amount owed. There may also be solutions that will allow you to complete the short sale without having to pay the difference between what you sold the home for and what you still owe on the mortgage.
5. Deed-in-lieu of foreclosure: There is also an option to deed the property back to the mortgage insurer and/or investor. This is called a deed-in-lieu of foreclosure. This is an option in case you are unable to sell your home directly.
All these mitigation options are designed to help you avoid foreclosure. Your eligibility for mortgage assistance will depend on your current financial situation, your payment history, your type of mortgage insurance, and investor rules governing your loan.
If you ever have a question about your Santander Bank mortgage loan, please contact us directly for support. Contact a Customer Service Center Advisor at 855-241-5699 from 8 a.m. to 5 p.m. ET, Monday through Friday. Representatives are available to discuss your unique situation, and together, we can identify the resources that can put you on the path to financial recovery.
Please note that this information is intended for Santander customers in the United States; different rules and regulations apply to our customers outside of the United States.
Bank does not provide financial, tax or legal advice and the information contained in this article does not constitute tax, legal or financial advice. Santander Bank does not make any claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in this article. Readers should consult their own attorneys or other tax advisors regarding any financial strategies mentioned in this article. These materials are for informational purposes only and do not necessarily reflect the views or endorsement of Santander Bank.
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