| Financial Hardship Options |
| Relief Option | How It Works | Best Used When |
| Forbearance | Temporarily suspends all or a portion of your monthly payment, followed by a formal plan using another option listed here to return your account to a current status. | Your hardship is expected to be short term in nature, or you know that you will be able to pay a particular amount on a specific future date and continue with your payments from that point forward. |
| Repayment Plan | Adds a portion of past due amounts to your regular monthly payment until your account is current. | Your hardship is expected to be short term in nature, and may even be over, and you have the ability to make an increased payment for a short period of time. |
| Partial Claim | Returns your account to a current status using funds from your mortgage insurer or guarantor. | Your mortgage is insured and your hardship is short term. Subject to mortgage insurer or guarantor approval. |
| Modification | Makes your payment more affordable by permanently changing one or more of the terms of your original note and mortgage. Delinquent amounts can sometimes be added back into the loan balance. | You can afford a reasonable payment that is less than your current payment and/or you don't have enough cash to bring your loan current. |
| Short Sale | Allows you to sell your home for its current value, even if it is worth less than what you owe. | You cannot make any payment but want to avoid foreclosure. |
| Assumption | Transfers title to a credit-qualified buyer, even if your loan is non-assumable. | You cannot make any payment but want to avoid foreclosure. |
| Deed-in-Lieu of Foreclosure | Transfers title to the property back to us to satisfy the amount you owe. | You cannot make any payment but want to avoid foreclosure and you have had your home listed for sale for at least 90 days. This option is reserved for the most extreme situations and is subject to investor approval. |
| Hope For Homeowners | Refinances your existing loan into a new fixed-rate loan insured by the Federal Housing Administration (FHA). | You are having difficulty making your current payment; you meet the eligibility requirements of the program; and your lender(s) agrees to participate. The new loan amount will be as high as 96.5% of the current value of your home, based on FHA guidelines in effect as of November 19,2008. This relief option may require your current lender(s) to forgive some portion of the amount you owe — lender participation in this program is voluntary. Other conditions apply. To learn more, visit the U.S. Department of Housing and Urban Development's Web site (www.hud.gov) or call the FHA Resource Center toll free at (800) 225-5342. |
| Making Home Affordable | Refinances or modifies your Fannie Mae or Freddie Mac-owned loan by reducing your interest rate and/or moving you to a more stable mortgage product. | Your loan is owned by Fannie Mae or Freddie Mac and you qualify for the terms of the modification or refinance. For more information about this program, visit www.makinghomeaffordable.gov. |
