Temporary forbearance. Repayment plan for missed payments. Interest rate reduction. Extension of loan term. Re-amortization of loan balance. Foreclosure stay. Refinancing. Short sale. Deed in lieu of foreclosure. What these terms mean.
Letters are being sent to borrowers who are 60 days delinquent or who are deemed likely to become delinquent based on a computer model that crunches the borrower’s credit score, payment history, debt-to-income ratio, home value, interest rate reset and other factors. If you don’t get a letter, that doesn’t necessarily mean you won’t qualify.