What is Hardship Assistance?

Payment deferral serves as a relief option and loss mitigation strategy aimed at resolving overdue payments while enabling homeowners to stay in their properties. This solution is tailored for a specific scenario—homeowners who have overcome a brief financial difficulty, can now manage their regular mortgage payments again, but lack the means to fully catch up on missed payments or commit to a repayment schedule.

Understanding Payment Deferral

A payment deferral adjusts your mortgage by moving past-due amounts to a later point, allowing you to resume regular payments without the immediate burden of catching up. Key aspects include:

• Deferred Missed Payments: Overdue amounts are shifted to the end of the loan term or a separate non-interest-bearing balance, payable when the mortgage is settled or refinanced.

• No Immediate Repayment Plan: Unlike other options, there’s no additional monthly repayment schedule for the deferred amount.

• Continued Homeownership: You maintain your property while addressing the hardship’s aftermath.

This solution is tailored for homeowners who have resolved a temporary financial difficulty and can now sustain their standard mortgage payments, but lack the resources to fully cover past-due amounts upfront.

Eligibility Considerations

Payment deferral may suit you if you meet specific criteria, such as:

• Recent Hardship Resolution: You’ve overcome a short-term challenge, like a medical expense or temporary income loss.

• Restored Payment Ability: You can now afford your regular mortgage payments moving forward.

• Inability to Catch Up Fully: You don’t have the means to pay missed amounts immediately or commit to an accelerated repayment plan.

Lenders often evaluate your situation to confirm that deferral aligns with your current financial capacity and their guidelines.

Benefits of Payment Deferral

• Relief from Past-Due Stress: Postpone missed payments without adding to your monthly obligations.

• Foreclosure Avoidance: Protect your home by resolving delinquency in a manageable way.

• Simplified Recovery: Focus on regular payments without the pressure of immediate catch-up costs.