Home$tart: Get a $5,000 Grant for Your First Home Purchase

Avoiding Foreclosure

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If you are having trouble making your loan payment due to a reduction in household income, First Digital may be able to help. Depending on the type of loan you have and your individual circumstances, there are options that may be available to you. Please contact us at 800.444.5858, opt. 5. We recommend that you be prepared to provide the following documents:
  • Proof of income, such as a paystub, bank statements or business tax returns if self-employed.
  • A budget detailing your monthly income and expenses.
  • You may be required to provide additional documentation depending on your situation.

Options for Avoiding a Home Foreclosure

  • Refinancing: If you qualify, you may be able to refinance your loan for an extended term and/or lower interest rate, which would reduce your monthly payments.
  • Loan Modification: You may qualify for a modification of your existing loan in order to make your payments more affordable.
  • Forbearance: You may qualify for temporary forbearance arrangements (i.e. extension of payment), depending on your situation.
  • Sale: If you sell the home yourself, you may be able to generate enough sale proceeds to pay off your loan in full. If the purchase price is insufficient to pay the loan in full, we may be willing to release the lien for less than the full balance (i.e. short sale). Be sure to contact us prior to listing your home for sale.
  • Short Sale: Sell your property; proceeds from the sale are used to pay off a portion of your mortgage balance when you owe more on your mortgage than the home is worth.
  • Deed in Lieu of Foreclosure: If you cannot pay your loan and are having difficulty selling your home, you may find it advantageous to enter into an arrangement to voluntarily transfer.

Additional Resources