Q. What is the difference between a lender and a servicer?

A. When you first obtained your mortgage loan, you worked with a lender. They provided the funds for your loan.

A servicer collects your monthly mortgage payments and if you have an escrow account, they pay the taxes and homeowners insurance on your behalf. The servicer may be a different company than your original lender.

The term lender and servicer are often used interchangeably, but you should always contact whatever company you are sending your payments.

To determine who your mortgage servicer is, check your monthly mortgage billing statement or check your payment coupon book. For a list of mortgage servicers visit online.

Q. How do I prepare for working with a mortgage company or housing counselor?

A. It would be helpful to have the following information on hand:

Your loan account number (you can find this one your monthly mortgage statement).
A brief explanation of your circumstances.
Recent income documents (such as pay stubs and benefit statements from Social Security, Disability, Unemployment, Retirement or Public Assistance. If you are self-employed, have your tax returns or a year-to date Profit and Loss statement available for reference).
List of household expenses.

Be prepared to answer the following questions:

What caused you to miss your mortgage payment(s)?
Do you have any documents to back up your explanation for falling behind?
How have you tried to resolve the problem?
Is your problem temporary, long-term or permanent?
What changes in your situation do you see in the short-term and in the long-term?
What other financial issues may be stopping you from getting back on track with your mortgage?
What would you like to see happen?
Do you want to keep the home?
What type of payment arrangement would be feasible for you?

Q. What should I expect when I call?

A. Expect to have more than one phone conversation with your loan servicer.

Your loan servicer will usually mail you a "loan workout" package containing information, forms and instructions.
Complete the forms and return them to your mortgage servicer quickly if you want to be considered for assistance.
The completed package will be reviewed before the servicer talks with you about a solution.
If you do not hear back from the loan servicer in a reasonable amount of time after submitting the workout package (generally seven to ten days), contact your loan servicer again and continue to follow up.

Q. What do I do when working with my servicer?

A. Keep notes of all your communications with the loan servicer including:

Date and time of contact.
Nature of the contact (face-to-face, phone, e-mail, fax or mail).
First and last name of the representative.
The outcome.

If you make any oral request to your loan servicer, follow up with a letter reiterating the oral request.

Send your letter by certified mail, return receipt requested so you can document that the loan servicer received your correspondence.
Keep copies of your letter and any enclosures.
Meet all deadlines the loan servicer gives you.
Stay in your home during the process because you may not qualify for certain types of assistance if you move out.
If you do not hear back from the loan servicer in a reasonable amount of time after communicating with the company, contact it again.
Continue to follow up.

Q. Does anyone have Foreclosure Prevention Loan Resources?

A. The Michigan State Housing Development Authority has two programs in their "Save the Dream" program. The MSHDA ARM Assist Refinance Program and the MSHDA Rescue Refinance Program may help eligible homeowners stay in their homes. For more information visit Save the Dream online or call 1-866-946-7432 for more information.

Q. What if I do not want to contact my lender?

A. Immediately call the HOPE Hotline at 1.888.995.HOPE, or contact a local HUD or MSHDA-certified housing counselor in your area. Most counseling options are FREE of charge and the housing counselors are certified by the U.S. Department of Housing and Urban Development. A counselor will work with you and your mortgage company in determining available options and next steps.

Q. What if my lender will not work with me?

A. Under Michigan’s new pre-foreclosure negotiation law, lenders/mortgage servicers are required to work with a homeowner to avoid foreclosure. If your lender/servicer refuses, seek legal assistance and ask to have the proceedings converted to a judicial foreclosure. For information about legal resources, click here.

For an FHA-insured loan

Your lender has to follow FHA servicing guidelines and regulations for FHA-insured loans. If your lender is not cooperative, contact FHA's National Servicing Center toll free at (888) 297-8685.

For a VA-insured loan

If you need assistance, talk to a Loan Service Representative by calling (phone number).

For conventional loans

If you have a conventional loan, first talk to a HUD approved Housing Counselor. They may be able to help you with your lender.

For more help, contact a HUD or MSHDA certified housing counselor:

If you are in Wayne County, click here for a list of local HUD and MSHDA certified foreclosure prevention counselors.

If you are outside of Wayne County, click here for a list of MSHDA certified housing counselors.

For a 24-hour nationwide access to a HUD housing counselor, call the HOPE Hotline at 888-995-HOPE or visit online.