Financial Hardship Assistance – Mortgage Loans

Financial difficulties can happen to anyone. The best thing to do is to communicate with us early in the process so we can discuss what options might be available. Provided below is a summary of several workout options that may help with your situation.

Financial Hardship Assistance – Mortgage Loans

OptionWhat is it?
What is the benefit?
Repayment PlanA repayment plan is an arrangement in which a borrower agrees to repay past due payments together with regular payments over an extended period of time.If you have fallen behind due to a temporary hardship and this challenge has since been resolved, a repayment plan allows you to repay the past due amount in installments together with the regular payments to catch up.
Recapitalization PlanUnder this program, the past due principal and interest balance is added to the outstanding principal balance and re–amortized over the remaining life of the loan. The original interest rate and loan maturity date will remain unchanged.This program is intended to help if you are financially able to make at least one payment every month, but otherwise have difficulty catching up on the past due balance which has been incurred as a result of a prior financial hardship.
Loan Modification Any modification to the terms of a mortgage loan making it more affordable, including changes to the interest rate or loan term.If a hardship has made it difficult to keep up with mortgage payments, a modification could make them more manageable.
Short SaleSell your home and pay off a portion of your mortgage balance when you owe more on the home than it is worth.Allows you to transition out of your home without going through foreclosure.
Deed in Lieu of ForeclosureA deed–in–lieu of foreclosure occurs when a member voluntarily transfers title and possession of the property to the credit union to satisfy the mortgage debt and avoid foreclosure.If you are facing the prospect of a foreclosure sale, consider a deed-in-lieu as a possible way to avoid it.

Check to see if your mortgage is owned by Fannie Mae.

If the loan is owned by Fannie Mae, you may be eligible for additional options. We recommend you visit Fannie Mae’s website to learn more about what is available for you at

Next Steps

  1. Contact Diablo Valley Federal Credit Union and ask us about the options that are available for your specific situation. We can be reached at 800-375-6077 or inquire via email at
  2. You may be required to complete a Borrowers Assistance Form (PDF) and IRS Form 4506-T. You will be asked to provide necessary documents in order for us to evaluate your eligibility for workout options.
  3. In addition, you may want to meet with a counselor from a housing counseling agency that is sponsored by the Department of Housing and Urban Development (HUD). You may find a housing counselor on the HUD website or by calling the toll free phone number 800.569.4287.