Kern Federal Credit Union is aware that the economy is creating financial hardships for many individuals and families. These hardships could mean that meeting financial obligations becomes difficult. If you find yourself unable to make your mortgage payment during this difficult time, we recommend that you take immediate action and call your certified housing lender or lender.
The sooner you put a plan in place, the more options you will have to avoid foreclosure on your home. The longer you wait, the process becomes much more difficult and expensive. Most lenders would prefer to work with you to keep your house than go through the foreclosure process. A formal foreclosure will damage your credit history and hinder your ability to borrow money in the future.
There are options available to you based on your individual needs and the lender's assessment of your situation:
- Forbearance - The lender may reduce or suspend payments temporarily, after which another plan of payment will be agreed upon to make the loan current. Forbearance is usually combined with a repayment plan or modification to bring the account current at a specific time.
- Repayment Plan - The lender may accept a schedule to repay the past-due amounts.
- Loan Modification - The lender may temporarily change the terms of the mortgage loan to make payments more affordable. For instance, an extension of the terms on the loan or lowering the interest rate.
Certain information will need to be provided when discussing these options with your lender:
- Copy of bank statements for the last 3 months
- Listing agreement if property is for sale
- A written statement explaining the financial hardship, signed and dated by all borrowers
- A completed financial statement signed and dated by all borrowers (a form is available through Kern FCU)
Verification of all income to include the following if applicable:
- If currently working, copies of last 2 pay stubs and most recent W-2
- If currently collecting unemployment, copies of 1 month unemployment benefits and prior year W-2's
- If self-employed or commission based, copies of last 2 years federal income tax return
If your lender is Kern Federal Credit Union:
Loan Adjustment Dept. at (661) 327-9461, or 800 336-KERN (5376)
If your mortgage lender is another institution:
Contact your lender directly
For counseling – HUD (housing and urban development) certified housing counselor:
Kern FCU is here to help. On our web site, you may click on Balance for additional information. If you should need further assistance after contacting your lender or HUD, please feel free to contact us at (661) 327-9461.