Alternatives to Foreclosure

Life is unpredictable, and circumstances can arise that make it difficult for you to keep up with your mortgage payments. The good news is there are a variety of programs that may be available to help you with your delinquency, avoid foreclosure, and keep your home. You may be eligible to refinance or modify your Navy Federal mortgage loan so your terms and monthly payments are more manageable. Or, if you have missed a few payments on your Navy Federal mortgage, you may qualify for a temporary or permanent solution to help you get your finances back on track. Our Mortgage Default Management Team specializes in member counseling and can help put you back in control. Our programs are listed below and our team is ready to help.

  • Contact our mortgage specialists at 1-888-503-7102, Option 4, between 8:00 am and 6:30 pm, Eastern Time.
  • Contact the Department of Housing and Urban Development Housing Counselors. This hotline provides free, comprehensive foreclosure assistance and housing counseling services around the clock. Call 1-800-569-4287 to ask about receiving help with your mortgage and to see if you qualify.

Home Retention Options

The right option for you depends on your individual situation. Once you review your options, you'll want to submit our Borrower Response Package to find out if you're eligible.

Repayment Plan

A repayment plan allows you to make up missed payment(s) by adding a portion of the past due amount to your regular monthly payment amount over an extended period of time.

Loan Modification

A loan modification makes your home more affordable by modifying the terms of your mortgage loan after you have successfully completed a trial period of reduced payments. This makes your payments or terms more manageable and provides a permanent solution to a long-term or permanent hardship.

Weighing Your Options

Depending on your circumstances, staying in your home may not be possible; however, a short sale or Deed-in-Lieu of Foreclosure may be a better choice than foreclosure.

Short Sale

A short sale is an option if you are unable to sell your home at a price which would allow you to pay off your mortgage/equity loan(s) in full. It requires you to list your property with a real estate agent, obtain a contract, and apply for assistance. This allows you to transition out of your home without going through foreclosure. In some cases, relocation assistance may be available.

Deed-in-Lieu of Foreclosure

If you are unable to sell your home, a Deed-in-Lieu of Foreclosure allows you to transfer ownership of the property back to Navy Federal Credit Union, upon approval.

See if You're Eligible

Please review and complete the Borrower Response Package. If you qualify, we will begin working on a resolution for any issues that affect your ability to make timely mortgage payments, whether your challenges are temporary or long-term. After you submit the requested information, a mortgage specialist will contact you. You should continue making your mortgage payments as scheduled, even after a request has been submitted.

Beware of Foreclosure Scams

Scam artists are stealing millions of dollars from distressed homeowners by promising immediate relief from foreclosure or demanding cash for counseling services. The truth is that HUD-approved counseling agencies provide counseling services free of charge. If you receive an offer, information, or advice that sounds too good to be true, it probably is. Remember, help is free at the U.S. Department of Housing and Urban Development (HUD).

How to Spot a Scam

Beware of a company or person who:

  • Asks for a fee in advance to work with your lender to modify, refinance, or reinstate your mortgage.
  • Guarantees they can stop a foreclosure or get your loan modified.
  • Advises you to stop paying your mortgage company and pay them instead.
  • Pressures you to sign over the deed to your home or sign any paperwork that you haven't had a chance to read and don't fully understand.
  • Claims to offer "government approved" or "official government" loan modifications.
  • Asks you to release personal financial information online or over the phone, though you have not been working with this person and/or do not know them.

How to Report a Scam

If you think you've been involved of scam, you'll want to do one of the following:

  • Visit the Loan Modification Scam Prevention Network at and submit an online complaint form. You can also fax, e-mail, or mail the completed form by referring to the back of the form (the Loan Modification Scam Prevention Network is a national coalition of governmental and private organizations led by Fannie Mae, Freddie Mac, NeighborWorks America, and the Lawyers' Committee for Civil Rights Under Law).
  • Call 1-888-995-HOPE (4673) and inform the counselor about your situation and that you think you've been involved in a scam. The Homeowner's HOPE Hotline provides free, 24/7 comprehensive foreclosure assistance and housing counseling services.

Contact us with any questions about the mortgage escalation and appeal process.