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  • Foreclosure Prevention

    Trouble Making Payments?

    Help is available to homeowners experiencing payment difficulties.  We will do everything possible to come up with a solution to help you.  No matter what your situation, we are here to help.  Different loan types may offer different types of assistance.  Depending on the type of loan you currently have, you may be eligible for one of the following options:

    Some of the options that may be available to you:

    • Special Forbearance – suspended or reduced payments for a period of time followed by increased payments, full reinstatement, or another loss mitigation option
    • Repayment Plan – a plan to catch up the past due amounts while continuing to make current payments
    • Loan Modification – a permanent change in the term of the loan in order to bring the loan current
    • Partial Claim – a promissory note and subordinate mortgage to cover the advances for past due payment, issued in the name of the Secretary of HUD
    • Preforeclosure Sale – selling the property for less than the balance owed to satisfy the debt
    • Deed in Lieu of Foreclosure – voluntarily deeding the property back to the lender to avoid foreclosure action

    In order for us to evaluate you for one of the options above we will need the following information:

    • Mortgage Assistance Application (Form 710): Provides details about yourself, co-borrowers, the property and your hardship.  Include required documentation that you must submit to be considered for available solutions.
    • 4506-T (IRS Form 4506T) Request for Tax Transcript:  Provide this form to give WHEDA permission to obtain a copy of recent tax returns from the IRS.
    • Income Documentation as outlined on Page 2 of the Borrower Assistance Form.
    • Hardship Documentation as outlined on Page 3 of the Borrower Assistance Form.
    • Bank Statements: Provide your most recent 2 months of statements for all banking and investment accounts.  Include all statement pages.
    • Federal Tax Return:  Provide most recent Federal Tax Return with all schedules.
    • If you have a Fannie Mae Loan, you must also provide: 

    And if you are interested in selling the property we’ll also need:

    • A copy of the Offer
    • A copy of the Listing agreement
    • Preliminary Settlement Statement or Closing Disclosure

    Once we receive your completed packet of information, we will work together to determine what option(s) are available.  The approval process may take up to 30 days to complete once your whole package is received.

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    Financial Forms

    Sign up for Automated Clearing House (ACH), WHEDA's electronic network for financial transactions.

    Customer Inquiries

    For questions or inquiries regarding specific delinquency management or default prevention processing or to submit a complaint or dispute, please contact the Quality Control & Compliance department at 800-334-6873 or Inquiries will be processed and reviewed within 5 business days.

    Loss Mitigation FAQs

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    What should I do if I’m worried about falling behind on payments?

    Contact your WHEDA Mortgage Loan Advisor immediately at 1-800-562-5546. This demonstrates your good faith and may open the door to a “workout’’ arrangement.

    What should I do to prepare for a conversation with my Mortgage Loan Advisor?

    It may take several conversations with your Mortgage Loan Advisor before settling on a course of action. To prepare for the dialogue, organize your financial documents including records that show your recent income and expenses. As you review your budget, ask yourself whether there are discretionary expenditures such as health club memberships, cable TV or dining and entertainment expenses that can be cut.

    If my financial situation isn’t likely to improve soon, should I try to sell my house?

    If your financial circumstances will not permit continued monthly payments or a workout agreement, selling your home before foreclosure proceedings start may be your best option. Although your home may no longer be worth the price you paid for it, homes sold during the foreclosure process or through a sheriff’s auction often sell for substantially less.

    Why did I receive a Notice of Acceleration letter?

    The Notice of Acceleration letter is sent when your loan is 2 months past due. Once the Notice of Acceleration has been sent, partial payments are not allowed to be accepted on the loan. Before a partial payment can be accepted, a forbearance/repayment plan must be in place.

    What are the Notice of Acceleration letter consequences.

    If you do not pay the total due by the date instructed on Notification of Acceleration letter, WHEDA may declare the entire unpaid loan amount due and payable without further demand, and may proceed to foreclosure and sell the property. Only full payment of the delinquency will cure the default. Any partial payment made may be retained and applied to your account, but will not cure the default nor halt foreclosure.

    Why am I billed Property Inspection Fees?

    If your loan is past due, guidelines require Property Inspections to be obtained approximately every 30 days until the loan is brought current.

    How do I start the Preforeclosure Sale process?

    First, complete and send your application for mortgage assistance. Once you find out if you're eligible for this option, we'll work with you and your real estate agent throughout the selling process to list your home at a price that's comparable to similar homes for sale in your neighborhood.

    If I sell the home for less than I owe, will I be required to pay the difference between the amount I owe and the amount I sell the home for?

    When you sell the home for less than you owe, the difference between what you owe on the mortgage balance and what the property sells for is called a deficiency - and we may be able to waive the deficiency balance. 

    If we're able to waive the deficiency, you won't have to pay the difference. If we can't waive your deficiency, you could still be responsible for the difference between the mortgage balance and the sale amount.

    Reducing the amount you owe, as well as any payments made to you under the program, may be reported to the IRS and may have tax implications. Please discuss any implications with your tax advisor.

    My loan is already in foreclosure. Can I still pursue the option to sell the home for less than I owe?

    Yes, you may be eligible. Even if your account is in active foreclosure status, you may still be able to sell the home for less than you owe to avoid foreclosure.

    Submitting a request doesn't stop the foreclosure referral, process or sale. A signed agreement of sale must be approved before the foreclosure sale date.

    My loan is up to date. Could I be eligible to sell the home for less than I owe?

    Yes, if you can show that you're struggling to make your payment due to financial hardship. Send your application for mortgage assistance to find out if you're eligible to sell the home for less than you owe and avoid foreclosure. 

    Can I sell the home for less than I owe if I have more than one mortgage on my property?

    Yes, you may still be eligible. However, if your second lien is with another bank, we'll need to make sure the owner of that mortgage loan approves the sale of the home.

    Does WHEDA choose a real estate agent? How do I find a real estate agent?

    You can choose the real estate agent you want to work with. But if you need help, we can recommend an agent who has experience working with mortgage companies. We'll work with you and your real estate agent throughout the sale process to make it as easy as possible.

    How long does the process take?

    Once you complete and send in all the documentation we need to review your application, you will find out what options you are eligible for within 30 days. 

    What can I do to make the home sell faster?

    If you're having trouble selling the home, make sure you work with us and your real estate agent to make sure your home is listed at a competitive price.

    I have an offer on my property and I need help selling the home for less than I owe. What do I need to do?

    First, you must complete and send your application for mortgage assistance to find out if you're eligible to sell the home for less than you owe and avoid foreclosure.

    If you are eligible to sell the home for less than you owe, the process is very similar to a regular home sale, except your real estate agent will send any offers on the home to us for approval or counteroffer. Once there is an agreed-upon price, the standard sale and closing process will occur.

    Who can I contact if I have questions or receive an offer from a qualified borrower?

    You can contact your Mortgage Loan Advisor if you have any questions throughout the home sale process. Keep in mind that once an offer is received, it could take up to 30 days for a decision to be made.

    Will I have to pay taxes?

    Reducing the amount you owe, as well as any payments made to you under the program, may be reported to the IRS and may have tax implications. Please discuss any implications with your tax advisor.

    How will this affect my credit score?

    We can't determine what impact principal forgiveness or the sale of a home for less than what you owe will have on your credit rating. It may have a negative impact. Credit bureaus that determine credit ratings will receive notice that your account was paid in full for less than the full balance.

    Will WHEDA charge a fee if I sell the home for less than I owe?

    No. We do not charge fees for the processing or completion of a home sale. 

    I am currently in bankruptcy, can I be considered for the program?

    Yes, you may still be eligible. Talk to your bankruptcy attorney about the process of selling your property during a bankruptcy.

    Can't I just give my property to WHEDA?

    You may be able to release the property to us if you have clear title. Clear title means that there are no other liens or payments owed on the property.