Alternatives to Foreclosure

What alternatives do I have to mortgage foreclosure?

Cache Valley Bank will assist in helping find alternatives to foreclosure.  Some of these alternatives may include a modification of rate and terms, forbearance plan to reduce or suspend payments temporarily, or to assist in sale of the property. Please contact us immediately if you can’t make your home payment.  Our toll-free telephone number is 1-888-418-5333.

The U.S. Department of Housing and Urban Development (HUD) requires all lenders to notify delinquent homeowners suffering financial hardship of the availability of home ownership counseling provided by experienced non-profit organizations that are approved by HUD. The toll-free telephone number for HUD is (800) 569-4287 or TDD/TTY (800) 877-8339.

The U.S. Treasury Department and HUD has also implemented a number of programs to assist homeowners who are at risk of foreclosure and otherwise struggling with their monthly mortgage payment.   These programs include the Home Affordable Refinance Program (HARP), Principal Reduction Alternative (PRA), and Treasury/FHA Second Lien Program.  They also provide assistance for unemployed homeowners through the Home Affordable Unemployment Program, Emergency Homeowners’ loan Program, and the FHA Forbearance for Unemployed Homeowners.  FHA staff are available to help answer your questions and assist you to better understand your options.  They can be contacted at 1-800-225-5342.

When discussing options for avoiding foreclosure, please be prepared to submit the following financial documents:

  • A letter of hardship
  • A signed IRS Form 4506-T
  • Pay stubs showing a 30 day pay history
  • W2s from the prior tax year
  • 2 years of personal and business tax returns with all schedules included
  • A completed, signed Personal Financial Statement (the credit application below may be used if you are not self-employed)
  • A completed, signed and dated Credit Application

*These documents are required in order to complete most alternatives.  Additional information may be requested.