We understand that life isn’t always easy. Financial hardship can happen for many different reasons, and we are here to help you through those hardships. The very last option would be foreclosure and it should only be considered once all the other options have been considered. Please always feel free to reach out to us by phone (303-952-1070) or email (servicing@pivotservicing.com) to discuss this.
State Funded Assistance
Homeowners who are having difficulty making their current mortgage payments may be eligible for State Homeowner Assistance Funds (HAF) programs. These programs provide assistance to families that have suffered short- and long-term financial hardships. While not all states offer these programs, and each state’s program may be different, they generally offer one or more of the following types of mortgage assistance:
Deferment Application
To apply for a modification or deferment, you need to complete this form.
Borrowers who have trouble paying their mortgage because of financial hardship can request a loan modification. Reasons for hardship can include:
- An increase in mortgage payments due to an increase in interest rate or escrow payments
- A reduction in income
- A hardship that increased monthly bills
- A future hardship that will make payments unaffordable
Typically, the lender can do a combination of the following to help the borrower stay in their home:
- Add any missed payments to the loan balance to bring the loan current
- Adjust the interest rate
- Lengthen the loan term – for example, going from a 30-year loan to a 40-year loan
- Forbearing or deferring payment on a portion of the loan balance until the loan matures or is paid off
In the case of a substantial loss of household income (permanent job loss, rental property vacant for a long period of time, significant reduction in income), the reality is that the lender will likely not be able to modify a loan because you may no longer be able to afford reasonable monthly payments on the loan. But no matter what your financial situation, you should still contact your lender to explore all options to avoid a foreclosure and the damage it can cause to your credit rating.