Foreclosure Alternatives

Please let us know if you are experiencing temporary or permanent financial difficulties. Banner Bank is more than willing to work with you to find a mutually agreeable way to help you keep up with your mortgage payments and preserve your home. Now is the time to take action before it’s too late. Below is a brief summary of some of the tools we have available to assist you and your first steps in pursuing these options.

 

  • Reinstatement - If you have the funds to repay missed mortgage payments, as well as any associated fees and late charges, a reinstatement can allow you to bring your loan current and avoid foreclosure. A reinstatement typically requires you to pay a lump sum by a specific date to become current. Keep in mind that retirement plans will often allow a withdrawal in order to avoid foreclosure on your primary residence. To request a hardship letter and the total amount due, call the Mortgage Loan Counseling Department at (800) 272-9933 ext. 75033.
  • RefinanceYour loan must be current to qualify. With this option, you receive a completely new mortgage with new terms, interest rates and monthly payments. The new loan completely replaces your current mortgage and may lower your payment, which could help improve your monthly financial situation. To begin the application process, contact your nearest Banner Bank loan officer or call the Mortgage Loan Counseling Department at (800) 272-9933 ext. 75033.
  • Repayment PlanWith this option, you spread out your past due amount—added on to your current mortgage payments—over a period of time in order to bring your mortgage current. This option is for short-term hardship situations. To request a repayment plan, call the Mortgage Loan Counseling Department at (800) 272-9933 ext. 75033.
  • Forbearance Plan - With this option, we agree to temporarily suspend or reduce your monthly mortgage payments for a specific period of time. This option lets you deal with your short-term financial problems by giving you time to get back on your feet and bring your mortgage current. You must show that you would be able to bring the loan current at the end of the plan. A complete Borrower Response Package may be required depending on the degree of delinquency and repayment term. To request a temporary forbearance, call the Mortgage Loan Counseling Department at (800) 272-9933 ext. 75033.
  • Loan ModificationUnder this option, we reach an agreement for a period of time to change the original terms of your mortgage—such as payment amount, length of loan, interest rate, etc. In most cases, when your mortgage is modified, you can reduce your monthly payment to a more affordable amount. A complete Borrower Response Package will apply. To request a loan modification, call the Mortgage Loan Counseling Department at (800) 272-9933 ext. 75033.
  • Partial Claim - In a Partial Claim, a borrower receives a second loan in an amount necessary to bring the delinquent loan current. The loan is interest free and does not need to be repaid until you pay off your first mortgage or sell your house. This option is only available to borrowers with FHA-insured loans.
  • Military Options - If you’re a service member struggling with your mortgage payment, you may qualify for special military options. Military service members also have protection against foreclosure for 12 months following termination of active duty. To discuss military options, call the Mortgage Loan Counseling Department at (800) 272-9933 ext. 75033.
  • Pre-foreclosure Sale - A short sale, also known as a pre-foreclosure sale, is when you sell your home for less than balance remaining on your mortgage. If approved, you can sell your home for less than the full amount due on the mortgage loan. To determine if a short sale is a good option for you, call the Mortgage Loan Counseling Department at (800) 272-9933 ext. 75033.
  • Deed in Lieu of ForeclosureA Deed in Lieu of Foreclosure, also known as a Mortgage Release, is where you voluntarily transfer the ownership of your property to the Bank in exchange for a release from your mortgage loan and payments. Depending on your long-term hardship situation, you may be required to make a financial contribution to receive this option. To discuss a deed in lieu of foreclosure, call the Mortgage Loan Counseling Department at (800) 272-9933 ext. 75033.

A complete Borrower Response Package may be required for available foreclosure alternatives depending on the option that best fits your situation, and the degree of delinquency. You can obtain a Borrower Response Package here.


Additional Resources

Contact FHA Struggling homeowners with FHA-insured loans can get assistance by contacting HUD’s National Servicing Center at (877) 622-8525. Persons with hearing or speech impairments may reach this number via TDD/TTY by calling (800) 877-8339.

HUD Housing Counseling HUD (Housing and Urban Development) sponsors housing counseling agencies throughout the country that can provide advice on buying a home, renting, defaults, foreclosures, and credit issues. HUD-approved housing counseling agencies are available to provide you with free information and assistance you need to avoid foreclosure. If you would like to contact a HUD approved counselor, please call (800) 569-4287 or visit the HUD website to find a local counseling agency. Persons with hearing or speech impairments may reach this number via TDD/TTY by calling (800) 877-8339.

Homeowner's HOPE Hotline If you think you may be in danger of foreclosure, it is time to call the Homeowner's HOPE Hotline at 888-995-HOPE (4673), a counseling service provided by the Homeownership Preservation Foundation. The sooner you call, the sooner you can regain your peace of mind. Remember, you're not alone. Millions of people across the United States have trouble with their mortgage every year. Homeowner's HOPE Hotline counselors are experts in foreclosure prevention and trained to set up a plan of action designed just for you and your situation. The counselors don't just offer general advice - they help you take action. Counselors will arm you with education and support that assists you in overcoming immediate financial issues... at no cost to you. We encourage you to visit the Homeowner's HOPE Hotline website.

Next Steps

Contact Information

If you are experiencing temporary or permanent financial difficulties, please call the Mortgage Loan Counseling Department at (800) 272-9933 ext. 75033.

Borrower Response Package

If you are experiencing a temporary or long-term hardship and need help with your mortgage, we encourage you to complete and submit this package along with other required documentation to be considered for available solutions.

SCRA Notice

Servicemembers on "active duty" or "active service," or a spouse or dependent of such a servicemember may be entitled to certain legal protections and debt relief pursuant to the Servicemembers Civil Relief Act.

HUD Brochure - English

Tips to avoid foreclosure from the U.S. Department of Housing and Urban Development (English).

HUD Brochure - Spanish

Tips to avoid foreclosure from the U.S. Department of Housing and Urban Development (Spanish).

Additional Information

Get helpful resources and additional information about foreclosure alternatives.