As a credit union, our goal is always to improve the financial lives of our members. If you are a homeowner experiencing financial hardship, our team is here to help. In this article, we’ll walk through some of the foreclosure alternatives provided by Amplify, as well as resources and counseling offered by third-party organizations. We’ll also provide you with important information on foreclosure scams and how to avoid them.
Key Takeaways:
- If you are experiencing financial hardship and in danger of missing loan payments on your home, contact the Account Resolutions team at Amplify Credit Union as soon as possible.
- Our team can help you with multiple options to avoid foreclosure, including reinstatement, payment deferrals, or home sales. Apply online by filling out the Mortgage Assistance Application.
- You can contact our team at (800) 237-5087 or by email at accountresolutions@goamplify.com.
- To avoid third-party foreclosure scams, work with organizations referred by Amplify, the U.S. Department of Housing, or Consumer Financial Protection Bureau.
What is foreclosure?
Foreclosure is the loss of your home through a legal process where Amplify or a third-party organization acquires the property at a foreclosure sale.
What are the consequences of foreclosure?
When referred to foreclosure, you must move or you will be evicted from the property. It may be as long as seven years before you are eligible for another mortgage. You and any additional borrower listed on the mortgage may experience negative credit implications.
Will the foreclosure process begin if I do not respond to the notices?
If you disregard our loan servicer notices about missed payments, your mortgage may be referred to foreclosure as authorized by your mortgage documents and applicable law.
Who do I contact about mortgage assistance?
To help you address potential hardships as quickly as possible, our Account Resolutions department has prepared an online Mortgage Assistance Application. You can also reach our teams through the following channels:
- Email: accountresolutions@goamplify.com
- Phone: (512) 519-5492 or toll-free at (800) 237-5087
- Fax: (512) 491-3706
Should you need to provide written documentation to our Account Resolutions team, you can also do so at the following address:
Attention: Account Resolutions
Amplify Credit Union
PO Box 85300
Austin, TX 78708-5300
Finally, you can contact our team through secured messages in online banking. Log into your online banking account on your desktop or mobile device and click Secure Messages in the main menu.
Should I still contact Amplify if my property has been referred to foreclosure?
Yes, the sooner the better! If you wish to keep your home, contact Amplify Credit Union immediately.
You may also contact a HUD-approved housing counselor (see Additional Resources) and request a three-way call that would include you, the HUD-approved housing counselor, and Amplify Credit Union to discuss your hardship. A HUD-approved housing counselor can also provide free advice on debt management.
How can I avoid foreclosure on my home?
When our members are faced with a financial hardship, our goal is to provide them with as many options as possible to address their hardship and avoid foreclosure. Click on the list below to see our full list of foreclosure alternatives, including repayment plans or traditional sales.
Foreclosure Alternatives
OPTIONS TO STAY IN YOUR HOME |
OVERVIEW |
BENEFIT |
|---|---|---|
Reinstatement |
Pay all past due amounts in a single lump-sum payment. Available if you have the funds to pay now.
|
Allows you to bring your mortgage current immediately. |
|
Repayment Plan |
Pay all past due amounts together with your regular monthly payments over an extended period of time. Available if you have sufficient income to cover more than your regular monthly payment.
|
Allows you time to bring your mortgage current without having to make a single lump-sum payment. |
Payment Deferral |
Defer repayment of two to six past-due principal and interest payments and certain other amounts into a non-interest-bearing balance due and payable at the maturity of the mortgage loan or earlier upon the sale or transfer of the property, refinance of the mortgage loan or payoff of the interest-bearing unpaid principal balance.
|
Allows you to bring your mortgage current by delaying repayment of past-due principal and interest and certain other amounts without changing other terms of your mortgage. Interest is not charged on those amounts. |
|
Forbearance Plan |
Make reduced payments or no payments for a specific period of time (for example, six months). During this time your mortgage will become increasingly delinquent. |
Allows you time to improve your financial situation and possibly qualify for another option, such as a modification, upon completion of the forbearance plan.
|
Modification |
Make modified payments based on new terms.
Requires your successful completion of a three-month trial period plan. |
Allows you to bring your mortgage current by permanently modifying your mortgage. Intended to make your payments or terms more manageable; typically results in a lower monthly payment.
|
| OPTIONS TO LEAVE YOUR HOME | OVERVIEW |
BENEFIT |
|---|---|---|
|
Traditional Sale (Sale with Equity) |
Sell your property. Proceeds from the sale are used to pay off the mortgage debt and any other debts secured by the property.
|
Keep the excess proceeds from the sale once all debts and closing costs are paid. Allows you to transition out of your home to avoid foreclosure. |
Short Sale |
Sell your property. Proceeds from the sale are used to pay off a portion of your mortgage balance when you owe more on your mortgage than the home is worth. |
Allows you to transition out of your home to avoid foreclosure. Relocation funds may be available. The remainder of your mortgage debt after the transfer of ownership may be forgiven, but there may be tax consequences – consult a tax advisor.
|
|
Mortgage Release (Deed-in-Lieu of Foreclosure) |
Transfer ownership of your property to us in exchange for relief from some or all of the mortgage debt. |
Allows you to transition out of your home if you are unable to sell your home to avoid foreclosure. Relocation funds may be available. The remainder of your mortgage debt after the transfer of ownership may be forgiven, but there may be tax consequences – consult a tax advisor.
|
Can I still be evaluated for mortgage assistance if my property is scheduled for a foreclosure sale?
Yes, but it is important that you reach out to Amplify as soon as possible to discuss potential options. If Amplify receives your complete Mortgage Assistance Application with only 37 or fewer calendar days before the scheduled foreclosure sale, there is no guarantee that Amplify will be able to evaluate you for mortgage assistance in time to stop the foreclosure sale.
Even if Amplify approves you for a foreclosure alternative prior to a sale, a court with jurisdiction over the foreclosure proceeding (if any) or public official charged with carrying out the sale may not be able to halt the scheduled sale.
Will my property be sold at a foreclosure sale if I accept a foreclosure alternative?
No. Your property will not be sold at a foreclosure sale if you accept a foreclosure avoidance option and comply with its requirements.
What if I acquired an ownership interest in the property, such as through death, divorce, or legal separation?
You should contact us as soon as possible. We are here to help you adjust to these events and provide you with information on where to send the mortgage payments. Please contact us to obtain a list of documentation that is needed to confirm your identity and ownership interest in the property, and to discuss the next steps.
Are there hardship resources available outside of Amplify?
If you are experiencing a financial hardship, you may be eligible for mortgage assistance from your state’s housing finance agency or other state or local government agency. For additional resources on local mortgage assistance programs, debt management resources, and language assistance services, contact one or both of the following government agencies:
U.S. Department of Housing and Urban Development
www.hud.gov/counseling
(800) 569-4287
Consumer Financial Protection Bureau
www.consumerfinance.gov/mortgagehelp
(855) 411-2372
How do I protect myself from third-party foreclosure scams?
It’s a sad fact that scam artists have stolen millions of dollars from distressed homeowners by promising immediate relief or mediation. If you have concerns about a third-party organization offering to help you avoid foreclosure, contact Amplify Credit Union. Amplify is not responsible for paying damages resulting from a scam.
When exploring your hardship options, here are a few red flags to avoid:
- The organization asks for a fee in advance to work with your mortgage servicer to modify, refinance, or reinstate your mortgage.
- They guarantee they can stop a foreclosure or get your mortgage modified.
- They advise you to stop paying your mortgage servicer and pay them instead.
- They pressure you to sign over the deed to your home or sign any paperwork that you haven't had a chance to read and don't fully understand.
- They claim to offer “government-approved” or “official government” mortgage modifications.
- They ask you to release personal financial information online or over the phone and you have not been working with this person and/or do not know them.
If you believe you have been contacted by a scammer, contact the Consumer Financial Protection Bureau to submit a complaint and get information on the next steps. You can also contact 995Hope at (888) 995-HOPE (4673) to provide additional information about the active scam.