Loan Information
Foreclosure paperwork assumes a vocabulary most people have never needed.
Here are the words that come up most, the options servicers discuss, and the papers to gather before you call.
Questions? Call 516-499-1731.
Loan terms in plain English
Seven words that turn up in almost every loan file.
- Note. The promise to repay. The debt itself.
- Mortgage or deed of trust. Ties the debt to the property and lets the lender foreclose if it is not paid. Which one depends on your state.
- Servicer. Takes your payment and sends your statements. Often not the owner of your loan.
- Lender or noteholder. The party entitled to enforce the debt. May have changed hands more than once.
- Arrears. The amount you are behind.
- Escrow. Money the servicer holds for taxes and insurance. A shortage can raise a payment even when the rate has not changed.
- Loss mitigation. The general term for alternatives to foreclosure.
Court-file words (assignment, acceleration, reinstatement, redemption, deficiency judgment, surplus monies and dozens more) are on Foreclosure terms explained.
Options to discuss with your servicer
What is available depends on your loan type, the investor that owns the loan, your state and your circumstances.
- Repayment plan. Catching up the arrears over time, on top of your payment.
- Forbearance. A temporary reduction or pause in payments. Ask what happens at the end before you agree.
- Loan modification. A permanent change to the loan's terms, made by your servicer.
- Partial claim or deferral. On some loan types, missed payments move to the end.
- Short sale. Selling for less than the balance, with the lender's agreement.
- Deed in lieu of foreclosure. Transferring the property to end the debt.
The last two end your ownership. Talk them through with an attorney first, including any remaining balance and the tax consequences.
You may contact your lender or servicer directly, at any time, and you need nobody's permission to do it. If anyone tells you to stop talking to them, treat that as a warning about the person telling you.
Documents your servicer will ask for
Gather these before you apply. Print this page and tick them off.
- A loss mitigation or borrower assistance application
- Recent pay stubs, or profit and loss statements if self-employed
- Recent tax returns, and W-2s or 1099s
- Recent bank statements, all pages
- Proof of other income: Social Security, pension, disability, or rental
- A monthly household budget
- A hardship statement in your own words: what happened and when
- Your mortgage statement, property tax and insurance information
Your servicer will tell you what it wants, and the list can differ.
Keep a clean paper trail
None of it costs anything, and it is worth more later than it feels now.
- Keep every envelope. Postmarks matter.
- Write down every call: date, time, who you spoke to, what they said.
- Send important documents so you get a receipt, and keep it.
- Never send originals to anyone.
- Do not stop opening mail. Unopened mail is how deadlines pass.
- Keep one folder, in date order, for everything about the loan.
If you do nothing else this week, start the folder.
See who has held your loan
Loans change hands, and the company you pay is often not the one that owns your loan. The Homeowner Research Document traces your loan through the public record: who held it and when, each transfer and assignment, and which filing answers which.
It puts every filing and deadline on one timeline and counts the amounts and dates. It sets the records of homes like yours beside your own, and alerts you when anything new is recorded.
Even if you accept this offer and use our service, your lender may not agree to change your loan.
Talk to a person.
Call 516-499-1731, Monday through Friday, 9:00 AM to 6:00 PM. Saturday appointments are available on request. If we are with another client, leave a message with your name, your phone number, and the county your property is in, and we will call you back.
Prime Real Estate Consultants
70 Sunrise Highway, Suite 500, Valley Stream, NY 11581
customerservice@
| Monday to Friday | 9:00 AM to 6:00 PM |
|---|---|
| Saturday | By appointment only |
| Sunday | Closed |
Free help is also available.
You do not have to pay anyone for help with a foreclosure. HUD-approved housing counseling agencies give free counseling nationwide. Call 1-800-569-4287 or visit hud.gov. Many states and counties also run free foreclosure prevention programs. We want you to know about them, whether or not you ever hire us.
If you have a sale date or a court date coming up, call a licensed attorney today.
We are not a law firm.
Prime Real Estate Consultants is a property research and consulting business. We do not practice law or represent anyone, and nothing on this site is legal, tax or financial advice. Contacting us or buying a service does not create an attorney-client relationship.