Trouble Paying Your Mortgage and Facing Foreclosure?

If you are having trouble or may soon have trouble making your mortgage payment, please call your loan servicer immediately (the organization to which you make your mortgage payment). Depending on the type of loan you have they either have to (mandated by the federal government) or are strongly encouraged by regulatory agencies to provide you with options for relief.  

In addition, ARCH highly recommends contacting a housing counseling agency.  The Washington Homeownership Resource Center (WHRC) provides free access to certified housing counselors, and may be reached at their Resource Hotline: 1-877-894-4663 or by email at info@homeownership-wa.org.  If you have trouble getting resolution from your loan servicer, or are having trouble making other housing related payments, like homeowner's association, condo association, or property tax payments, WHRC can help you understand your rights and options. 

If you're not sure what type of loan you have, contact your loan servicer or try the Fannie Mae and Freddi Mac online lookup tools.  A housing counselor will also be able to help you understand your mortgage and what that means for your rights and options.

Foreclosure Protections

Through June 30, 2021, the federal government has enacted a moratorium on foreclosures for people with loans backed by Fannie Mae, Freddie Mac, HUD/FHA, USDA, or VA. The moratorium prohibits lenders and loan servicers from beginning judicial or non-judicial foreclosures, or finalizing a foreclosure judgment or sale.

Mortgage Forbearance - Federally Backed Loans

In addition to the foreclosure moratorium, the CARES Act established a number of protections for federally backed loans, which account for about 70% of homeowner mortgages.  If you have a federally backed loan and you have suffered a loss of income, you can qualify for forbearance (either a reduction or suspension of payments) for 180 days, with the option to request an extension for another 180 days.  

If your loan is backed by HUD/FHA, USDA, or VA, the deadline for requesting an initial forbearance is June 30, 2021. If your loan is backed by Fannie Mae or Freddie Mac, there is not currently a deadline for requesting an initial forbearance.

You should not be charged additional fees for late payments, and your lender should not report missed payments to the credit bureaus.  You should also have several different options for repayment and should not be required to repay all missed payments at the end of the forbearance period.  However, you must contact your loan servicer to be approved for these options, and there may be limits on your refinancing options if you enter into a forbearance program. 

Loans Not Backed by the Federal Government

Many other banks are following suit with willingness to suspend payments, make loan modifications and provide other concessions for borrowers who are experiencing financial hardship as a result of COVID-19.  ARCH strongly suggests calling the WHFC hotline to connect with a counselor that will help you understand how to advocate for options that work for you.  

It is best to discuss your options with a foreclosure avoidance counselor. Click here for a list of HUD recommended counselors. For more tips on avoiding foreclosure, visit here.

Your Housing Options If You Are Facing Foreclosure

You will need a place to live after going through foreclosure.  A foreclosure will have an adverse effect on your credit scores and that may impact your ability to rent or get a mortgage.  Your foreclosure counselor may help you sort through the possible options.  Click here for a list of foreclosure avoidance counselors. 

If you are looking for rental housing, click here to see get access to the Apartment Finder list of properties.  

For Eastside rental options, click here to see the ARCH-maintained list of affordable rental properties. 

 

Home Repair and Weatherization

There are several different organizations which can assist income qualified homeowners with repairs to their homes, particularly the elderly, disabled, and families with children.

Bellevue Home Repair Assistance


Do you own a home in Bellevue City limits? Got a leaky roof but you're short on cash? Dripping faucets getting you down? You may be eligible for Bellevue's Home Repair Program, which gives a 0% loan toward making approved improvements. You can inquire about how this program works by clicking here .

King County Housing Repair Program


King County has some great programs for homeowners who want to make repairs to their homes and need some extra financial assistance in the form of a deferred loan, matching program and/or grant. These programs are for people outside of Seattle City limits and not all programs are available in all areas. So check it out and see what's available in your area.  In addition to assisting homeowners, this program also helps renters with special needs. 

King County Housing Authority Weatherization Program


KCHA's Weatherization program helps low-income homeowners and renters reduce their energy costs and improve the indoor air quality of their homes.  Common repairs include: ventilation improvements, insulations installs, furnace repairs and air sealing to prevent drafts. 

Rebuilding Together

Need help around the house? This program is for you! Rebuilding Together is a non-profit organization that sponsors an annual one day home repair project for low-income homeowners who are elderly, living with disabilities or families with children. All repairs are provided at no cost to the homeowner.

Habitat for Humanity Seattle King County


Habitat's "A Brush With Kindness" program provides 0% loans towards needed home improvements.  Instead of a down payment they ask you volunteer a certain number hours based on the cost of your home repairs.  You can volunteer on their build site, in their office, or at their store.  If interested visit their website or call them at (425) 869-6007.  

 

Additional Homeowner Resources

Consumer Finance Protection Bureau (CFPB) has compiled a detailed guide to mortgage assistance.

Visit https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/ and  

https://www.consumerfinance.gov/about-us/blog/guide-coronavirus-mortgage-relief-options/

 

Federal Deposit Insurance Corporation is working with financial institutions to develop reasonable and prudent steps to assist customers in communities affected by COVID-19. Regulatory agencies have encouraged financial institutions to work with customers impacted by COVID-19. Visit https://www.fdic.gov/coronavirus/index.html

Bellevue Conflict Resolution Center (BCRC) provides foreclosure mediation for homeowners who are in arrears on their mortgages and want to negotiate a modification or other solution.  Call (425) 452-4091, or email bcrc@bellevuewa.gov. BCRC also works with direct referrals from the Washington Department of Commerce Foreclosure Fairness Program:  https://www.commerce.wa.gov/building-infrastructure/housing/foreclosure-fairness

 

If you have questions on what your city is currently doing in regard to the need created by COVID-19, please visit their websites for additional information.