1
Forbearance
A forbearance temporarily reduces or pauses your mortgage payments to provide short-term relief during a temporary financial hardship.
- Payments continue to accrue during this period.
- Your credit may still be impacted for not making monthly payments.
- After forbearance ends, you must repay missed or reduced payments via:
- Lump sum repayment
- Repayment plan
- Loan modification or payment deferral, upon approval
Approval required, contact us to see if you qualify.
2
Repayment Plan
A repayment plan is a simple way to catch up on missed mortgage payments without paying everything at once.
- You'll make your regular monthly payment, plus a portion of the past-due amount each month.
- Continues for a set period — usually 3–6 months — until your loan is current.
- Designed for homeowners who can afford slightly higher payments.
Benefits:
- No lump-sum payment required
- Helps you avoid foreclosure
- Keeps your mortgage manageable
Subject to approval based on ability to resume payments. Contact us to learn more.
3
Payment Deferral or Partial Claim
A payment deferral lets you move missed payments to the end of your loan — you won't have to pay the deferred amount right away, but you'll still owe it later when you sell, refinance, or pay off your loan.
Deferral vs. Partial Claim:
- Deferral: Moves missed payments to the end of your loan term.
- Partial Claim: Missed payments become a second lien on your home.
The number of payments that can be deferred depends on your loan type and is subject to approval. Contact us to see if you qualify.
4
Loan Modification
A loan modification changes the terms of your existing mortgage to make payments more manageable. This typically involves:
- Adding past-due amounts back into your loan balance
- Adjusting your interest rate
- Extending your loan term
This is different from a refinance, which replaces your current mortgage with a new loan.
Approval required. Terms and eligibility vary based on your financial situation and loan requirements.
Solutions When Staying Isn't Possible
If staying in your home is no longer financially possible, there are ways to move forward while avoiding the stress and credit impact of foreclosure.
Traditional Home Sale
Selling your home is often the best option if you can no longer afford your mortgage. Proceeds can pay off your loan and any remaining funds can help with a new home or rental.
Short Sale
If your home's value has dropped and you owe more than it's worth, your servicer may approve a short sale. You may receive a cash incentive for maintaining the property, and a short sale is generally better for your credit than foreclosure.
Eligibility requirements apply, and all parties must approve the sale. Contact us to see if you qualify.
Deed in Lieu of Foreclosure
Transfer ownership of your home to Flat Branch in exchange for a release of all obligations under the mortgage. You may receive a cash incentive for maintaining the property until final approval.
Available to eligible borrowers who meet program requirements. Contact us to discuss whether this option is right for your situation.