LOAN ASSISTANCE

THIS PAGE PROVIDES INFORMATION ON HOW TO KEEP FROM LOOSING YOUR HOME DUE TO FORECLOSURE AND IS REQUIRED BY THE STATE OF CALIFORNIA FOR LENDERS.

Whether you’re looking to keep your home and get current or you’d like to sell, Harmony is committed to helping customers by offering a variety of options that best fit your situation.

Options for keeping your home and getting current

Repayment plan - You catch up on payments by paying the regular monthly payments plus an extra amount each month,
How it works - The loan has a new, higher monthly payment that includes a portion of the balance due for a set period of time.
Benefits - Gives time to catch up on payments without having to pay the total amount all at once.
Important Considerations - An initial down payment may be required, and the monthly payments will be higher than normal.

Forbearance plan - You either won’t have to make payments or your payment will be reduced for a designated period of time.
How it works - We’ll reduce or suspend loan payments for a designated period of time.
Benefits - Gives you time to improve or stabilize your financial situation.
Important Considerations - A lump sum equal to the amount of the missed payments will be due at the end of the forbearance period. We will work to qualify you for other programs to bring the loan up to date. The loan will be considered past due until it is brought current.

Mortgage modification - We’ll permanently change the terms of the loan to bring the account current. This may include a lower monthly payment or lower interest rate.
How it works - We review your finances and work to change the terms of the loan based on your specific situation.
Benefits - This option will bring the account current and may reduce the monthly payments if you have a long-term financial issue.
Important considerations - A trial payment period may be required. Not all modifications result in a lower payment.

Reinstatement - The total amount due is paid in one lump sum by a specific date.
How it works - A lump sum payment is made on a scheduled date to pay the total amount due.
Benefits - The account is brought current quickly.
Important considerations - Funds must be available to make one lump sum payment. Fees incurred to date may be included in the reinstatement amount.

Options that involve selling or transferring the home

Short sale - The home will be sold for less than the balance remaining on the mortgage.
How it works - You will work with your realtor to sell your home. We’ll agree upon a sales price and will apply the proceeds from the sale to the loan.
Benefits - Some of the loan balance is paid off. In some cases, relocation assistance may be available to help you move out of the property.
Important considerations - Depending on the investor/insurer’s rules, part of the loan balance may need to be paid. If required by the IRS, we will report the remaining loan balance as income on IRS Form 1099. You should ask your tax/financial advisor for information about how this may affect you.

Deed-in-lieu - The home is transferred to us, and we terminate the loan.
How it works - We review your finances and the condition of your home. We will take ownership of the home and terminate the outstanding loan obligation.
Benefits - In some cases, relocation assistance may be available to help you move out of the property.
Important considerations - Depending on the investor/insurer’s rules, part of the loan balance may need to be paid. If required by the IRS, we will report the remaining loan balance as income on IRS Form 1099. You should ask your tax/financial advisor for information about how this may affect you.

Sell your home conventionally - The home is sold for more than the balance remaining on the mortgage.
How it works - You will work with your realtor to sell your home. If the buyer pays more for your home than you owe on all the liens against the property you will receive the net proceeds from the sale after closing costs and commissions are paid.
Benefits - You can use the net proceeds to make a fresh start or to take care of expenses until your situation improves.
Important considerations - If there are additional liens against your property and not all of them will be paid in full then a Short Sale will be required.

Other resources

As always, we’re happy to work with you over the phone or by email. Our contact info is at the top of the page.
For free or low-cost general advice about buying a home, renting, default or avoiding foreclosure, contact a housing counselor at the U.S. Department of Housing and Urban Development (HUD) at 833-412-0892.
If you are seeking additional information on the services and resources available to you, please refer to the CFPB Housing Portal.