A demand letter is a legally required notice that is sent when the loan is in default, subject to the terms of the mortgage, any applicable Federal and/or State law, or specific investor requirements. 
The demand letter includes the total amount required to cure the delinquency and the timeframe in which the delinquency must be cured. 
These letters may also be referred to as: 
<ul>
<li>Breach Letter; </li>
<li>Notice of Default; or </li>
<li>Notice of Intent.</li>
</ul>

Describes what demand letters are and when they could be sent

Demand Letter Overview

## Disaster Forbearance Plan ##
Select "*Request Now*" to obtain information and request assistance online. You’ll be guided through the process step-by-step and will be asked the same simple questions that our agents would cover with you on a phone call.

[CallToActionOnly buttonText="Request Now" buttonPath="/mortgage_assistance/application/disaster_relief"
/]

**Not impacted by a disaster but still need mortgage assistance?** ***[Click here to explore additional mortgage assistance solutions.](/help-center/mortgage-assistance/mortgage-assistance-solutions)***

Provides access to our relief solution and other helpful resources

Disaster Relief

## Frequently Asked Questions About Disaster Relief ##
    
    

    
[AccordionBlock accordionQuestion=" I am unable to make the mortgage payments due to a natural disaster.    
Is there help available?" accordionAnswer="Yes. If you’re experiencing a financial hardship due to a natural disaster, we’re here to help. You may be eligible for a Disaster Forbearance Plan."/]

[AccordionBlock accordionQuestion=" How do I apply for disaster relief for the mortgage?" accordionAnswer="You can [request assistance online](/mortgage_assistance/application/disaster_relief). You’ll be guided through the process step-by-step and will answer the same questions that our agents would cover with you on a phone call."/]

[AccordionBlock accordionQuestion=" What is a Disaster Forbearance Plan?" accordionAnswer="For eligible clients, a Disaster Forbearance Plan temporarily pauses mortgage payments for a set period of time. It is not a waiver or forgiveness of the paused payments. During the forbearance plan period, late fees will not be assessed, and negative credit reporting will be suppressed."/]

[AccordionBlock accordionQuestion=" Who qualifies for a Disaster Forbearance Plan?" accordionAnswer="If you’ve been impacted by a recent disaster, you may qualify for a forbearance plan to help you recover during this challenging time. Other investor-specific criteria may apply. Once you sign in to your online account, you will be advised of your eligibility and if eligible, you’ll be able to [request assistance online](/mortgage_assistance/application/disaster_relief)."/]

[AccordionBlock accordionQuestion=" How long is a Disaster Forbearance Plan?" accordionAnswer="Typically, Disaster Forbearance Plans are approved for an initial period of 1–3 months. Additional extensions may be available, if eligible. We’ll be in touch near the end of your plan to discuss next steps."/]

[AccordionBlock accordionQuestion=" If I need disaster relief but I’m not eligible, what are my options?" accordionAnswer="Even if you’re not eligible for a Disaster Forbearance Plan, you can always [explore other mortgage assistance solutions](/help-center/mortgage-assistance/mortgage-assistance-solutions). (Eligibility is determined by the owner of the loan, not by us). 
We’re also providing some additional resources and links below that may be helpful:
- Visit the *Get Help* section of the [Red Cross website](https://www.redcross.org/get-help) or contact them by phone at 1-800-733-2767.
- Visit [FEMA’s disaster assistance website](https://www.disasterassistance.gov/) or contact the agency by phone at 1-800-621-3362."/]

[AccordionBlock accordionQuestion=" Are active bankruptcy or litigation accounts eligible?" accordionAnswer="Loans that are in active bankruptcy or active litigation are unable to request mortgage assistance online. If you are interested in applying for assistance, please [contact us](/contact-us) for more information."/]

[AccordionBlock accordionQuestion=" Will I be charged late fees or interest for pausing the payments during a Disaster Forbearance Plan period?" accordionAnswer="No. While you’re on the plan, no late fees or additional interest will be charged. Only the past due regular principal and interest payments will be due at the end of the forbearance, as well as any outstanding escrow payments."/]

[AccordionBlock accordionQuestion=" Will my credit be affected during a Disaster Forbearance Plan?" accordionAnswer="Negative credit reporting will be suppressed from the credit bureaus while on a Disaster Forbearance Plan. While there is no negative credit reporting, credit-scoring companies may consider whether there is an increased credit risk due to the lack of reporting."/]

[AccordionBlock accordionQuestion=" What solutions may be available to me if I cannot pay the full amount of the missed payments at the end of a Disaster Forbearance Plan?" accordionAnswer="If you get to the end of your forbearance period and can’t bring the account current with one lump sum payment, here are some solutions that may be available:
[Note] **_Note:_** The availability of these solutions is ultimately determined by your unique circumstances and the owner of the mortgage loan.
[/Note]
- **Enter a repayment plan** – Over a set period of time (usually 3 to 6 months), an additional amount is added to the regular mortgage payment to cover the missed payments.
- **Modify the loan** – If you qualify, the loan’s terms may be adjusted to provide an affordable payment and cover the amount owed. Usually that means extending the length of the mortgage and changing the interest rate.
- **Defer the paused payments** – If the owner of the loan offers this solution and you qualify, the paused payments will be placed into a junior lien payable to the loan’s investor or moved to the end of the loan (as a lump sum final payment), either of which would be due at the earlier of loan payoff, sale or transfer of the property, or maturity."/]

[AccordionBlock accordionQuestion=" I have mortgage insurance. Will being on a Disaster Forbearance Plan    
affect it?" accordionAnswer="A forbearance plan may extend the number of months you must pay on time to cancel the Private Mortgage Insurance (PMI) or Mortgage Insurance Premium (MIP)."/]

[AccordionBlock accordionQuestion=" I am in an active review or trial plan for a mortgage assistance solution.    
Will a Forbearance Plan affect it?" accordionAnswer="Your current review/plan will be cancelled if you enter a Disaster Forbearance Plan. You may reapply at the end of your forbearance, but we cannot guarantee you'll be approved."/]

[AccordionBlock accordionQuestion=" Can my house be foreclosed on?" accordionAnswer="During your forbearance, we will not refer the mortgage to foreclosure or proceed to foreclosure sale. If any foreclosure action or proceedings were pending before your forbearance, those actions will be placed on hold. However, once your Disaster Forbearance Plan is over, unless you enter into a permanent solution to bring the loan current, the foreclosure process may commence or continue."/]

[AccordionBlock accordionQuestion=" Will I continue receiving a billing statement while on forbearance?" accordionAnswer="We are legally required to send you a billing statement showing the amount due every 30 days. While the statement will still show the contractual amount due, you are not required to make the monthly payment during the term of the Disaster Forbearance Plan. Details concerning the Disaster Forbearance Plan will be referenced under the section labeled "*Here's Some Helpful Information*.""/]

[AccordionBlock accordionQuestion=" I am on AutoPay. Will I need to turn it off    
during a Disaster Forbearance Plan?" accordionAnswer="We will automatically cancel your AutoPay. If you see that your AutoPay is not cancelled, however, you can cancel online [here](/servicing/payments/autopay/new)."/]

[AccordionBlock accordionQuestion=" I have automatic payments through my bank’s online bill pay.    
Should I cancel them?" accordionAnswer="Yes. If you use online bill pay through your bank, please be sure to edit, cancel, or suspend payments to Mr. Cooper while on a forbearance plan. We have no control over these payments and therefore cannot cancel the occurrence on your behalf."/]

[AccordionBlock accordionQuestion=" Why am I receiving letters saying I'm delinquent if I'm on a Disaster Forbearance plan?" accordionAnswer="Since you are not making payments—or making a reduced payment—during a forbearance, the loan is technically delinquent. We are legally required to send you certain notices about the delinquent status. However, you are not being charged late fees, and negative credit reporting will be suppressed while on a Disaster Forbearance Plan."/]

[AccordionBlock accordionQuestion=" Can I cancel the Disaster Forbearance Plan later if I decide I don’t want it?" accordionAnswer="Yes. You can cancel your forbearance plan at any time by [contacting us](/contact-us). Just remember that when the forbearance plan ends, any payments missed during the forbearance plan will be due."/]

[AccordionBlock accordionQuestion=" I’m currently going through a refinance. If I enter into a Disaster Forbearance Plan, will it affect my closing?" accordionAnswer="Possibly. While your forbearance is active, you are unlikely to qualify for a refinance of the home loan."/]

[AccordionBlock accordionQuestion=" What happens to my escrow account while I'm in forbearance?" accordionAnswer="If the account is escrowed, taxes and insurance will continue to be paid out of the escrow account during a Disaster Forbearance Plan."/]

[AccordionBlock accordionQuestion=" Is a Disaster Forbearance Plan right for me?" accordionAnswer="A Disaster Forbearance Plan provides temporary relief from making monthly mortgage payments due to a disaster. We encourage you to speak with your financial advisor or attorney before making any decision regarding this plan or any other mortgage assistance solutions."/]

[AccordionBlock accordionQuestion=" Can I sell my home while on forbearance?" accordionAnswer="Absolutely. You can sell your home at any time."/]

Provides answers to many questions about disaster relief

Disaster Relief FAQs

If you’ve been affected by a disaster, such as a winter storm, hurricane, tornado, or wildfire, here are 3 steps you can take to help ensure your home and finances are protected.
- File an insurance claim with your provider for damages related to the disaster.
- [Apply for mortgage assistance](/mortgage_assistance/application/disaster_relief) with us.
- Register for disaster assistance with federal, state, and local agencies. (This assistance may cover expenses that your insurance company doesn’t.)

###Insurance Claim Process###

1. **Contact your homeowners insurance provider** – Provide details of the damage and loss sustained due to the disaster. 
[Note]
**_Note:_** If flood damage occurred and your flood insurance is provided through FEMA’s National Flood Insurance Program (NFIP), you can find information on starting a claim with them at [FloodSmart.gov/recover/start-a-claim] (https://www.floodsmart.gov/recover/start-a-claim).
[/Note]

2. **Document damage before making repairs** – Keep photos and videos for your records. Some insurers let you report the damage remotely via live video from your smartphone.

3. **An adjuster is assigned, if your loss is covered** – The adjuster will work with you to assess the property damage and provide an estimate of the repair costs.

4. **Find a contractor** – When [finding a contractor] (https://www.mrcooper.com/blog/find-good-contractor/), consider recommendations from others, obtain multiple offers, and finalize the agreement in writing.

5. **Loss draft (claim) check issued** – If the check is sent to you, visit [www.insuranceclaimcheck.com] (http://www.insuranceclaimcheck.com/) or call our Loss Draft Department at 866-825-9302 for next steps. Check out our [Insurance Claim Check Process] (/help-center/escrow/insurance-claim-check) article for more information. 

###Applying for Mortgage Assistance###

1. **Disaster Relief** – Depending on the loan, if your home or income were impacted by a disaster, this assistance may include a [Disaster Forbearance Plan] (/help-center/mortgage-assistance/disaster-faqs) with benefits, such as:

[Indent]
- Payment relief for a set period of time
- Negative credit suppressions
- No late fees   

For more details about how Disaster Forbearance Plans work, see our [Disaster Relief FAQs] (/help-center/mortgage-assistance/disaster-faqs).
[/Indent]

 
2. [**Apply for a Disaster Forbearance Plan**](/mortgage_assistance/application/disaster_relief) – You’ll be guided through the process step-by-step and will be asked the same simple questions that our agents would cover with you on a phone call. 
[Note]
**_Note:_** If you have any trouble applying online, please [contact us](/contact_us).
[/Note]

3. **Contact Information** – Don’t forget to **[update your contact information](/servicing/settings)** if you’ve been temporarily relocated so we can keep in touch with you during this difficult time.

###Registering for Additional Disaster Assistance###

1. **Federal disaster assistance** – Visit [www.disasterassistance.gov] (http://www.disasterassistance.gov/) or call FEMA at 800-621-3362 (for TTY calls, dial 800-642-7585). You may be eligible for benefits and resources that are not covered by your insurance company. 

[Note]
**_Note:_** This step is recommended whether or not your home is in an official disaster area, as undeclared areas can be added at a later date (you can check for declared areas with FEMA’s search tool). 
[/Note]

2. **State or local agencies** – Contact agencies, such as your:

[Indent]
- State’s and county’s emergency management offices
- Department of health and human services
- Governor’s office

You can also find resources at [www.fema.gov/locations] (http://www.fema.gov/locations) by entering your city and state or ZIP code. Select “Helpful Resources” once your state’s page appears. USA.gov also provides links to [local resources] (https://www.usa.gov/after-disaster). 
[/Indent]

3. **Helpful organizations** – Non-profits and other organizations may be willing to assist you as well. Here are some well-known organizations and their information:

[Indent]
- Red Cross: Visit the [Get Help] (http://www.redcross.org/get-help) section of their website or call 1-800-RED-CROSS.
- United Way: Visit the [211] (https://www.211.org/) section of their website or call 2-1-1.
- Salvation Army: Visit the [Disaster Relief] (https://www.salvationarmyusa.org/usn/help-disaster-survivors/) section of their website.
[/Indent]

[Note]
**_Important:_** Beware that [scammers] (/help-center/account-help/avoiding-mortgage-scams) may try to take advantage of you in your time of need and pose as a non-profit or government official. Home repair scams and price gouging efforts also increase after natural disasters.
[/Note]

By making the most of every opportunity open to you, we hope you will walk away from a disaster financially sound and with your dream of homeownership secure. Whenever you need us, we will be here to help you.

Explains what steps to take after a disaster

What To Do After a Disaster

Disaster Resources

You can quickly apply for [mortgage assistance online] (/servicing/loan_modification/new). If you’d prefer to mail or fax your application—or if you don’t have an online account—you can [download] (/support/mortgage_assistance/application_process_get_form) it here. 

[Note]
**_Note:_** If you're currently engaged in an active bankruptcy, please consult with your attorney before submitting a mortgage assistance application.
[/Note]

When applying for mortgage assistance, time is of the essence, especially if you're already getting collection notices or already in the foreclosure process. 

###Documents Needed for Mortgage Assistance###
[Indent]
The mortgage assistance application lists all required documentation. 
If additional information is needed during the underwriting review, we’ll contact you to inform you of the documentation needed and provide a reasonable timeframe to return the documents requested. 
[Note]
**_Note:_** The document requirements will be unique to you and your situation.
[/Note]
[/Indent]

###Application Process###
[Indent]
1. When we receive your application and supporting documentation, we’ll send you a letter to inform you whether your application is complete or if additional information or documentation is required. 

[Indent]
[Note]
**_Note:_** In some cases, when we have sufficient information on file, a client may be eligible to submit an expedited application or not have to submit an application at all. If this applies to you, you’ll see “Eligible for Expedited Application” when you request [assistance online] (/servicing/loan_modification/new).
[/Note]

Each time we need to communicate with you, we send a letter to the [mailing address] (/servicing/settings) on file. You can also see the status of the review on your [online account] (/mortgage_assistance/overview).
[/Indent]

2. If the application is complete and no further information or documentation is needed, we will evaluate your application and provide a decision letter **within 30 days** from the date the application was deemed to be complete.

3. If additional information or documentation is needed during underwriting, you will receive a letter listing the documentation needed and a due date to submit them to us. 

    - If the required information/documentation is **submitted by the due date**, we will evaluate your application and provide a decision letter **within 30 days** from the date that we receive it.

4. In determining whether you are eligible for a modification program, we may obtain a valuation of your property such as an appraisal or BPO (Broker’s Price Opinion). In this case, we will promptly provide you with a copy of any such valuation regardless of whether you are approved for a modification. Copies of valuations will be provided at no cost to you.

[/Indent]

If you have further questions, please [contact us] (/contact_us).

Explains the application process and lets you quickly apply online

Applying for Mortgage Assistance

###Reporting Mortgage Scams###
[Indent]
It is imperative to report any potential mortgage related scams right away.
- [Contact us] (/contact-us) if you receive suspicious phone calls, letters, or emails—especially those that require payments or changes to your mortgage terms.
- Notify the credit bureaus of strange activity.
- Notify local and federal authorities of any fraud attempts. 

[Note]
**_Note:_** Visit our [Mortgage Scams Resource Center] (https://www.mrcooper.com/blog/mortgage-scams-resource-center/) for additional tips and information. 
[/Note]
[/Indent]

###Protecting Yourself from Mortgage Scams###
[Indent]
A couple actions you can take to protect yourself from fraud:

- **Turn on Multi-Factor Authentication** (MFA) for an extra layer of security. This is one of the most important things you can do to secure your account. With MFA enabled, you’ll be required to enter a one-time passcode—sent to you via email or text message—every time you sign in to your account. *You can enable MFA for your Mr. Cooper account on the [Settings] (/servicing/settings) page.*

- **Create long passwords** and make sure they’re strong. One way to ensure your password is difficult to crack is to use at least 12–16 characters, with a combination of letters, numbers, and special characters (if allowed). You can also use a passphrase that’s long and easy to remember but misspell a word and use a number and a symbol for extra strength. ***Example:*** ILoveAllDogsThat4$Berk

- **Stay on guard.** Today’s scammers are sophisticated and can use tools like artificial intelligence, fake websites, and elaborate letters and contracts to trick you. They may also disguise their email addresses and phone numbers with legitimate looking numbers and addresses to lure you in.
[/Indent]

###Avoiding Mortgage Scams###
[Indent]
Here are some common “red flag” scenarios that may indicate a communication is a scam:
[Indent]
####“Free” Money (Offers to Make Payments for You)####
- **Mortgage payments on your behalf in exchange for partial reimbursement.**
These scams involve third parties making bogus payments to your account, which end up being rejected as non-sufficient funds. Though they may show you “proof” of their payment, it would only be ***in process (but not settled).***
    - ***Example:*** A scammer posing as a representative of a mortgage assistance program or deceased relative’s estate tells you a $50,000 mortgage payment will be made on your behalf but you will need to wire $5,000 back.
- **Escrow overage checks that require you to send funds back.**     
These scams involve convincing you to deposit a fraudulent check (exposing your banking information) and to send some of those funds to the scammer via a wire service, gift cards, etc.

####Incorrect Company Information (phone, email, etc.)####
- Contact phone numbers that do not begin with a toll-free area code (e.g., 800, 855, 866, etc.).    
*We **never provide personal or cell phone** contact numbers in official communications **related to homeowner assistance.***

- An email address that doesn’t end in our domain of “@mrcooper.com.”    
*Some scams may use our logo and font styles to appear legitimate, but there will always be some kind of incorrect information listed. Also watch for red flags like misspellings (i.e., mrcopper.com).*

####Payment Requests####
- Requests to make payments with “unconventional” methods. These may include:
    - **barcodes** sent via email or text message asking you to pay through **Walmart**, Green Dot, MoneyGram, or Western Union;
    - **prepaid/”Green Dot”** debit cards; or
    - **wires to an individual** (rather than Mr. Cooper).    
*You can always review our official [payment method options] (/help-center/payments/payment-options). If a requested method ***doesn’t exactly match*** one on the list, please contact us immediately.*

- Requests for up-front or advance payment to begin the modification, refinancing, or reinstatement application process. 
*We ***never charge fees*** for ***applying or approving*** loan modifications.*

- Advice to start making payments to any third party instead of us **for any reason.**

####Missing Payments####
- Payments you’ve been making that you were led to believe were going toward a trial or modification agreement but we have no record of them.     
*Please [contact us] (/contact-us) as soon as possible so we can research the issue.*

####Personal Information####
- Lists your full Social Security Number in communications.    
*We will **never** list your full Social Security Number in communications.*

####Pressuring or Aggressive Tone####
- Communications (emails, texts, and phone calls) with a sense of urgency that possibly contain your Mortgage ID number.    
*We never send mail with your loan information printed on the outside.*

- Threats of foreclosure or eviction if funds are not paid “immediately.”

- Pressure to make commitments to things you don’t fully understand.    
*Be especially careful if you’re pressured to ***sign over your deed*** or sign any paperwork you haven’t had a chance to fully review and ask questions about.*

####Suspicious or “Too good to be true” Modification Agreements####
- A trial or modification agreement from the “Underwriting Department.”    
*Our ***underwriting department never sends notifications*** directly to clients.*

- A trial or modification agreement with **extremely low** interest rates, well below industry standards.

- A loan modification agreement that was not received from a **verified** source.

- The phrases “government approved” or “official government” in descriptions of loan modification offers.    
*Government agencies like HUD, and government sponsored entities like Fannie Mae, will ***never contact you*** to offer you a loan modification or to make a payment.*
[/Indent]
[/Indent]

[Video]
  [VideoTitle]How can I avoid mortgage scams?[/VideoTitle][VideoThumbnail src="https://storage.googleapis.com/apolloimage/images/apollo_mr_cooper/how-can-i-avoid-mortgage-scams.jpg"]https://player.vimeo.com/video/955038054[/VideoThumbnail]
[/Video]

Provides red flags to help avoid mortgage scams and ways to protect yourself

Avoiding & Reporting Mortgage Scams

Another alternative to foreclosure is called Deed in Lieu of Foreclosure (DIL).

- DIL means that you **voluntarily transfer ownership** of your home to your lender, the lender terminates the loan, and the **remaining balance due is forgiven.**
[Note]
**Note:** A DIL may have **tax consequences and/or impact your credit,** so you’ll want to contact your tax advisor to discuss these potential impacts. 
[/Note]
- With a DIL arrangement, you’ll have plenty of time to plan your move and transition out of your home. You may also be eligible for relocation assistance or assistance with paying other liens and judgments against your property.

[Indent]
[Note]
**Note:** Some investors will not permit a DIL if you have not been evaluated for all home retention solutions.
[/Note]
[/Indent]

You will need to submit a completed [Statement of Information](--image_host--/images/NSM%20PDFs/MRC_statement_of_information.pdf) form to start the review process.    
[Note]
**Note:** These arrangements are subject to investor approval and certain other eligibility factors. 
[/Note]

[Video]
  [VideoTitle]How else can I avoid foreclosure?[/VideoTitle][VideoThumbnail src="https://storage.googleapis.com/apolloimage/images/apollo_mr_cooper/how-else-can-i-avoid-foreclosure.jpg"]https://player.vimeo.com/video/955038391[/VideoThumbnail]
[/Video]

Explains a DIL and how to begin the process

Deed in Lieu of Foreclosure (DIL) Information

A demand letter is a legally **required notice** that is sent when the **loan is in default**, subject to the terms of the mortgage, any applicable Federal and/or State law, or specific investor requirements.    

The demand letter includes the **total amount** required to cure the delinquency and the **timeframe** in which the delinquency must be cured.     

These letters may also be referred to as:    
- Breach Letter;    
- Notice of Default; or    
- Notice of Intent.

If you’re approved for a [mortgage assistance solution](/help-center/mortgage-assistance/mortgage-assistance-solutions), you may be required to complete a Trial Period Plan as part of the process.    
- During a Trial Period Plan, which usually lasts for **3 months,** you’ll pay a new monthly payment amount.    
- It is **imperative** that these **payments be made timely** and in the **exact amount**, as stated in the Trial Period Plan approval letter.

###Why a Trial Period Plan May Be Required    
[Indent]
The Trial Period Plan is a **temporary payment relief period** that allows you to demonstrate you can **consistently** manage to pay the estimated **modified mortgage payment.**    

Additionally, it’s important for the investors to have confidence in your ability to repay the loan through the remaining loan term.
[/Indent]

###Keys to Success
[Indent]
The requirements for your Trial Period Plan will be *very specific*. You must follow the instructions on timing, frequency, and payment amount **exactly** to successfully complete your Trial Period Plan.    
[Note]
**Note:** If you do not follow the requirements as stated, you **may fail the Trial Period Plan.** 
[/Note]    

**Timing:**   
- It’s **highly encouraged** to make the Trial Period Plan payment as **early in the month** as possible to set yourself up for success. However, you do have the entire month to make the monthly payment. 
- Late Trial Period Plan payments will not be accepted and will likely **cause you to fail your Trial Period Plan**.     

**Frequency:**    
- Only **one Trial Period Plan payment** should be made **each month.** 
- Making two payments within the same month **may cause you to fail your Trial Period Plan**.    

**Payment Amount:**    
- You must pay the **exact amount** stated in your Trial Period Plan approval letter—no more, no less.    
[Note]
**Note:** After your Trial Period Plan is finished, you must **continue to make monthly Trial Period Plan payments** until the mortgage assistance solution is completed.
[/Note]
[/Indent]

If you have further questions about this phase of the [Mortgage Assistance process](/help-center/mortgage-assistance/tracking-loan-mod-process), please contact us:
- [ChatLink]Chat with us[/ChatLink].
- **Call us** at **866-316-2432**.
- [Request a callback](/servicing/payment-support).

How to successfully complete a Trial Period Plan during the mortgage assistance solution process

Keys to Trial Period Plan Success

If you’re facing a **long-term hardship**, we can review you for a loan modification to determine if more manageable terms are available.

- While refinancing means replacing your existing loan with a new one, loan modification **keeps your existing loan** and **changes its terms**.

- If you qualify for a loan modification, some potential ways to reduce your monthly payment would be through lowering your interest rate or extending the term of the loan. 

Specific eligibility requirements may vary depending on the loan’s investor or other factors.

###Trial Period Plan###
[Indent]
If you’re approved for a loan modification, in some cases, you will be required to first complete a Trial Period Plan. This is a **temporary payment relief period** that allows you to demonstrate that you can consistently manage the estimated **modified mortgage payment**.

- You will have a new monthly payment amount during this Trial Period Plan. 
- If you **make timely payments and meet all requirements** stated in the Trial Period Plan terms, the **permanent loan modification** documentation will be prepared and sent to you for execution.
[/Indent]


You can learn more about the [application process] (/help-center/mortgage-assistance/applying-for-mortgage-assistance) or [apply online] (/servicing/loan_modification/new) now.

[Video]
  [VideoTitle]What is a Trial Period Plan?[/VideoTitle][VideoThumbnail src="https://storage.googleapis.com/apolloimage/images/apollo_mr_cooper/what-is-a-trial-period-plan.jpg"]https://player.vimeo.com/video/955038498[/VideoThumbnail]
[/Video]

How loan modification can help with financial hardship

Loan Modification Details

###Servicemembers Civil Relief Act (SCRA)###
[Indent]
Under a **federal law** called the Servicemembers Civil Relief Act (SCRA), military members may be entitled to a range of benefits. These are unrelated to Veterans Affairs (VA) benefits.

If the loan was **originated prior to military service,** military members may be entitled to these benefits **during active service and 12 months following** it: 
- Foreclosure protection 
- Lowered interest rate to 6% maximum, if the interest rate on the loan is more than 6% 
- No new late fees
- No new legal fees

You may be eligible for SCRA benefits if you are: 
- A regular member of the U.S. Armed Forces (Army, Navy, Air Force, Marine Corps, or Coast Guard). 
- Reserve or National Guard personnel who has been activated and is on federal active duty. (National Guard members and members of state military units who are called to state active duty are not covered by SCRA. However, many states have enacted laws that extend SCRA protections to such servicemembers who are called to state active duty.) 
- National Guard personnel under a call or order to active duty for more than 30 consecutive days under section 502(f) of title 32, United States Code, for purposes of responding to a national emergency declared by the President and supported by federal funds. 
- An active service member of the commissioned corps of the Public Health Service or the National Oceanic and Atmospheric Administration. 
- A U.S. citizen serving with the armed forces of a nation with which the United States is allied in the prosecution of a war or military action.

If you are interested in receiving protection and benefits under the SCRA, **please send us a copy of your Active Duty Orders.**
- You can email scanned or electronic versions to: MilitaryFamilies@mrcooper.com 

[Indent]
For hard copies, either fax to 855-856-0427 or mail to: Mr. Cooper ATTN: SCRA/Military Families PO Box 619098 Dallas, TX 75261 
[/Indent]

After we receive them, we’ll let you know if we need additional information—this may include documents about your loan, debt, and FHA case number (if applicable).

Read more about [SCRA benefits and eligibility.](https://www.consumerfinance.gov/consumer-tools/educator-tools/servicemembers/the-servicemembers-civil-relief-act-scra/)

[Video]
 [VideoTitle]Understanding Loss Mitigation Options[/VideoTitle]
 [VideoThumbnail src="https://storage.googleapis.com/apolloimage/images/help-center/LAK/images/VA-thumbnail.svg"]https://www.youtube.com/embed/0xTb-ovAAXc?rel=0[/VideoThumbnail]
[/Video]
[/Indent]

###Additional Resources###
[Indent]
Here are some additional resources provided by the Consumer Financial Protection Bureau (CFPB):
- [Military Financial Lifecycle] (https://files.consumerfinance.gov/f/documents/cfpb_lifecycle-of-military-consumer_resources.pdf): A roadmap depicting significant financial decision points and resources to support servicemembers throughout and after their military careers.
- [Military Lending Action (MLA) details] (https://www.consumerfinance.gov/consumer-tools/military-financial-lifecycle/military-lending-act-mla/): An overview of certain aspects of the MLA, including the [MLA Applicability Flow Chart] (https://files.consumerfinance.gov/f/documents/cfpb_servicemembers_mla-applicability-flow-chart.pdf), which can help covered borrowers understand whether the MLA applies in a particular situation.
[/Indent]

Mortgage assistance options and eligibility for military homeowners

Mortgage Assistance for Military Members

If you’re behind on your mortgage payments due to a temporary financial hardship that has been resolved, you may be reviewed for a Payment Deferral Plan as a solution to resume making monthly payments (subject to investor guidelines).    

###What It Means
[Indent]
If approved for this solution, the missed principal and interest payments will be moved to the end of the loan and due as a lump-sum payment when you pay off the loan, refinance, sell, or transfer an interest in the property.

Any other amounts paid on your behalf, such as a tax or insurance payments for which we came out-of-pocket, will also be deferred to the end of the loan.

[Note]
**Note:** It may be required to make a payment before finalizing the Payment Deferral Plan if the number of missed payments exceeds the months allowed. If this required payment is not made, your eligibility may be impacted.
[/Note]
[/Indent]

###Getting Started    
[Indent]
While eligibility is ultimately determined by the loan’s investor, a requirement for this program is that you have the ability to make the current monthly payment going forward, including any potential [***escrow shortage***] (/help-center/escrow/escrow-shortage-surplus) amount.    

See if you’re eligible for a Payment Deferral Plan by [requesting mortgage assistance online] (/mortgage_assistance/application), where you’ll answer the same questions about your situation that our agents would ask on a phone call.
- If eligible, you’ll see more information about the specific plan details and the process to move forward. 
- After submitting your request, you’ll receive a decision letter with next steps **within 30 days.**
[/Indent]

Describes a Payment Deferral Plan as a potential mortgage assistance solution

Payment Deferral Plan

Solutions may include, but are not limited to:
- [refinancing] (/help-center/mortgage-assistance/refinancing-for-mortgage-assistance); 
- [repayment plans] (/help-center/mortgage-assistance/repayment-plan-details); 
- [loan modification] (/help-center/mortgage-assistance/loan-modification-details);
- [short sale] (/help-center/mortgage-assistance/short-sale-information); and
- [Deed in Lieu of Foreclosure] (/help-center/mortgage-assistance/deed-in-lieu-of-foreclosure).

Complete a mortgage assistance [application] (/servicing/loan_modification/new) online now and let us know what’s going on. We’ll help you determine a plan of action and next steps based upon your circumstances. You can also [contact us] (/contact_us) if you have questions or need to speak with an agent.


[Video]
  [VideoTitle]What mortgage assistance is available?[/VideoTitle][VideoThumbnail src="https://storage.googleapis.com/apolloimage/images/apollo_mr_cooper/what-mortgage-assistance-is-available.jpg"]https://player.vimeo.com/video/955037906[/VideoThumbnail]
[/Video]

Lists the most common mortgage assistance solutions

Potential Mortgage Assistance Solutions

If it’s getting harder to make your payments but you **haven’t fallen behind yet**, you may have a simple, effective option: Refinancing your mortgage to one with a lower monthly payment.

- To refinance as part of a mortgage assistance plan, your account needs to be current for the past 6 months. 
- Also, there can’t be more than one late payment on your account over the past 12 months.
- There are a few other eligibility requirements we’ll be glad to go over with you when you [contact us about refinancing] (/contact_us).

If you qualify, refinancing can be one of the easiest ways to get back on track without big impacts to your credit score or living situation.


How refinancing can help with financial hardship

Refinancing May Be an Option for Mortgage Assistance

A repayment plan is an agreement that spreads the past due amount over a specific period, **typically 3–6 months**, during which time you make a **full payment, plus a partial payment**, until the account is brought current.
- Repayment plans can be an ideal option for homeowners who face **temporary hardships**. 
- Like all mortgage assistance options, the sooner you let us know about your need for help, the more likely a repayment plan will be available to you.

If you can afford to pay more than your normal payment until all missed amounts are repaid, a repayment plan may be a good solution for you. Please [contact us] (/contact_us) to get started.


How a repayment plan can help with financial hardship

Repayment Plan Details

We have several options to submit your documentation:

- **Online:** [Sign in] (/signin) to your online account.
- **Email:** modification.assistance@mrcooper.com
- **Fax:** 214-488-1993
- **Mail:**
[Indent]
Mr. Cooper    
Attn: Centralized Mod Department    
PO Box 619097    
Dallas, TX 75261    
[/Indent]

However you send your documents, please be sure to include a note **including your name, loan number, property address, and contact information.**

Finally, if you have been making payments and have been led to believe they are going towards a trial or modification agreement, but we have no record of the payments, then something may be wrong. Please [contact us](/contact_us) as soon as possible so we can research the issue.


Where to send your mortgage assistance documents

Sending Your Mortgage Assistance Documents

If there isn’t a financially feasible way for you to keep your home, a short sale is an option that can give you a fresh start and avoid the foreclosure process.
- A short sale allows you to **sell your home for less than you owe** on the mortgage, **pending investor approval.**
[Note]
**_Note:_** If you have equity in your home—meaning the home’s value is greater than the amount owed—you should pursue a [traditional home sale] (/help-center/mortgage-assistance/traditional-home-sale) instead.
[/Note]

[BannerWithCta image="--image_host--/images/help-center/--brand_name--/images/house-image.png" header="Is Selling Your Home the Right Solution?" description="Our Xpert Seller program offers homeowners support when selling their home while facing financial difficulties." buttonText="Learn More" buttonPath="https://www.xome.com/xpert-seller/mrcooper?utm_source=mrcooper&amp;utm_medium=referral&amp;utm_campaign=help_center_link" /]

- If you want to pursue a short sale, have your real estate agent open a case at [equator.com](https://www.equator.com) and upload the [Third Party Authorization Form](--image_host--/images/apollo_mr_cooper/Short-Sale3rd-Party-Auth-form.pdf) to start the review process. If you don’t have a real estate agent, we have a program to help you find one.
[Note]
**_Note:_** Some investors will not permit a short sale if you have not been evaluated for all home retention solutions. [/Note]

[Indent]
- We may request certain documentation to complete the short sale review. The short sale process could be delayed if the requested documentation is not received in a timely manner.[/Indent]
[Note]
**_Note:_** A short sale may have tax consequences and/or impact your credit, so you’ll want to contact your tax advisor to discuss these potential impacts. 
[/Note]

[Video]
 [VideoTitle]How else can I avoid foreclosure?[/VideoTitle][VideoThumbnail src="https://storage.googleapis.com/apolloimage/images/apollo_mr_cooper/how-else-can-i-avoid-foreclosure.jpg"]https://player.vimeo.com/video/955038391[/VideoThumbnail]
[/Video]

Explains how a short sale works and how to begin the process of being reviewed for a short sale

Short Sale Information

###How to voluntarily terminate:   
[Indent] If your situation has changed and you no longer want to receive this monthly payment supplement, you can voluntarily terminate the program by [**filling out and returning this form**] (https://storage.googleapis.com/apolloimage/images/Support/MRC/payment_supplement_agreement_termination.pdf). 
[/Indent]
		
[Note]
**Note:** Upon termination of the program, both the Partial Claim amount **and** any applied payment supplements will become due. [/Note]

Explains how to terminate the FHA Payment Supplement

Terminating the FHA Payment Supplement

If you’re requesting [mortgage assistance] (/help-center/mortgage-assistance/applying-for-mortgage-assistance), you can keep tabs on the progress of your request by [signing in] (/signin) to your online account.    
- You’ll immediately land on your ***Mortgage Assistance*** dashboard and see a progress tracker for each of the **5 phases** in the process. 
- Your current phase will be highlighted.

###Phases of Mortgage Assistance Requests    

**1. Application Started**    
[Indent]
We’ll need either an [online request] (/mortgage_assistance/application) or a [fully completed application] (/support/mortgage_assistance/application_process_get_form)—and any initial required documents indicated—before moving to the next phase. 
The sooner you can submit an online request or completed application, the better.
[/Indent]

**2. Application Received**    
[Indent]
Once we’ve received an online request or completed application, we’ll review it, along with any submitted documentation where applicable, to ensure we have all necessary initial information, as determined by investor and program requirements, to make a decision on your request.    
- If we need more information or additional documentation, we’ll send you a letter to let you know.    
[Note]
**Note:** We also suggest that you regularly check your “To-Do List” toward the bottom of the **Mortgage Assistance** dashboard to see what additional documentation may be required.
[/Note]

- If we don’t need any more documents, we’ll evaluate your request, and you’ll receive a **decision letter within 30 days** that will outline the next steps.
[/Indent]

**3. Trial Plan Approval**    
[Indent]
In some cases, you may be required to complete a [Trial Period Plan] (/help-center/mortgage-assistance/trial-period-plan-success) before the mortgage assistance request can be completed. *(Trial Period Plans usually last for ***3 months***.)*    
- During this time, you must **make timely payments and meet all requirements** stated in the Trial Period Plan approval letter before the permanent mortgage assistance solution documents can be sent to you.    
- Contact us or simply make the first Trial Period Plan payment **by the due date specified in the approval letter** to accept the offer.    
[/Indent]

**4. Trial Complete**    
[Indent]
Once all Trial Period Plan payments have been made, we’ll ship your **final, approved mortgage assistance solution documents**, which will contain the new terms of the loan.
- ***IMPORTANT:*** *To complete your mortgage assistance solution, you **must mail** in the **original, signed and notarized** (if required) final mortgage assistance solution documents.*    
- You’ll have 30 calendar days from the mortgage assistance solution’s effective date to return the final documents, but please try to return them **as soon as possible.**.    
[Note]
**Note:** You must continue to make the monthly Trial Period Plan payments until the mortgage assistance solution is completed.
[/Note]    
[/Indent]

**5. Modification Complete**    
[Indent]
Congratulations! Your mortgage assistance solution has been completed, and the loan has been **permanently modified.**     
- We’ll mail a fully executed copy of the mortgage assistance solution documents back to you within 45 days of receiving the signed documents from you.
[/Indent]

Explains what to expect during the mortgage assistance process and how to track the progress

Tracking the Mortgage Assistance Process

Mortgage Assistance

The **CalAssist Mortgage Fund Program**—also known as **CalAssist**—was created by the California Housing Finance Agency (CalHFA) to assist California homeowners whose properties were destroyed **or** made uninhabitable by certain disasters.    
- Applicable disasters are those that received a State of Emergency proclamation by the governor **or** a Major Disaster Declaration approved by the president between **January 2023 and January 2025**. 
- If you believe you may qualify, you can [apply for assistance] (https://www.calassistmortgagefund.org/) beginning on 06/12/2025. Applications are reviewed on a first come, first served basis.

[Note]
**Note:** The application process is handled by the state. The state determines eligibility, approves or denies the application, and advises us of their final decision. We are not involved in the review or decision process.
[/Note]    

###Assistance Details
[Indent]
- If you qualify, you may be eligible for assistance of the lesser of **$20,000** or **3 months of PITI** (principal, interest, taxes, and insurance) payments. If approved, funds are sent directly to the Servicer as a **lump-sum payment** and applied to the account.    

[Note]
**Note:** This assistance **does not have to be paid back**. 
[/Note]
[/Indent]

###Eligibility 
[Indent]
To be eligible for CalAssist, you must meet the following criteria:
- The property must be located in a California-declared disaster area, as specified on the [CalAssist website] (https://www.calassistmortgagefund.org/);
- The property must have been occupied as your primary residence in the month prior to the disaster;
- The property was destroyed or made uninhabitable by the disaster;
- The mortgage must have been current the month before the disaster occurred; 
- The household income cannot be above the limit specified by the state on the program website; **and**
- The account must be a first lien.
[/Indent]
You can learn more about the program and apply for assistance by visiting the [CalAssist Mortgage Fund] (https://www.calassistmortgagefund.org/) website.

Describes the CalAssist Mortgage Fund and how to apply

CalAssist Mortgage Fund

**Homeowner Assistance Fund (HAF)** is a government-sponsored initiative managed by the Department of Treasury to offer assistance for homeowners impacted by the COVID-19 Pandemic that began in 2020. 

[Note]
**_Note:_** The application process is handled by each state. The state determines eligibility, approves or denies the application, and advises us of their final decision. We have no involvement in the review or decision process.  
[/Note]

HAF programs may include the following:
- Mortgage **payment assistance** for unemployed or underemployed homeowners;

- **Reinstatement** for delinquent accounts;

- **Principal reduction** to help homeowners get into more affordable mortgages (recast or modification); and/or

- Funding to **eliminate** homeowners’ **second lien** loans.

You can see what options your state offers by visiting the [National Council of State Housing Agencies] (https://www.ncsha.org/homeowner-assistance-fund/).

Provides information on an additional resource for homeowners

Homeowner Assistance Fund

The United States Department of Housing and Urban Development (HUD) has **trained housing counselors** who can talk through your situation and options with you. 

They’re ready to help with your questions about credit, foreclosure, rentals, and much more. 

Get started by [finding a HUD counselor.](http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm)

An alternative method of mortgage assistance

HUD Counseling

If you’re struggling and can’t find another way to catch up on the mortgage payments—and you have equity in your home—a traditional home sale may be a good option for you to avoid foreclosure and satisfy the mortgage.

###What It Means
[Indent]
- If you have equity in your home—meaning the home’s value is greater than the amount owed—you can **sell with equity**. 
- When you sell with equity, you can use the proceeds from the sale of the home to pay off the remaining mortgage balance. 
- Bonus: If there’s money left over, you could use that profit toward paying off other debts or finding your next home!

[Note]
**_Note:_** If the value of the property is not enough to cover what’s owed on the mortgage, a [short sale] (/help-center/mortgage-assistance/short-sale-information) or [Deed In Lieu of Foreclosure] (/help-center/mortgage-assistance/deed-in-lieu-of-foreclosure) may be better options for you. 
[/Note]

[/Indent]
###How It Works
[Indent]
You’ll follow the traditional home sale process, which starts with finding a proven, local **real estate agent** who can help you **sell** your home at a **competitive price**.   

- One of your options is to work with a program like [Xpert Seller] (https://www.xome.com/xpert-seller/mrcooper), which offers homeowners support when selling their home while facing financial difficulties.

- For more tips on selling your home, including [how to save money when selling your house] (https://www.mrcooper.com/blog/ways-to-save-money-when-selling-your-house/) and [getting your house ready to sell] (https://www.mrcooper.com/blog/get-your-house-ready-to-sell-with-10-easy-fixes/), visit our [Blog] (https://www.mrcooper.com/blog/).

[/Indent]

Explains how a traditional home sale can help the borrower sell the home when there is equity available

Traditional Home Sale

If you’re out of work, there are ample resources for finding a new job, as well as getting help during your period of unemployment.

### **Unemployment Insurance Benefits**
[Indent]
The Federal-State Unemployment Insurance Program offers **benefits to unemployed people** who meet state **eligibility requirements.**

Visit [CareerOneStop.org](https://www.careeronestop.org/localhelp/unemploymentbenefits/unemployment-benefits.aspx) to learn about your state’s requirements and get help applying for benefits. 
- This resource can also assist you with finding a new job. 
- Sponsored by the U.S. Department of Labor, it offers self-assessment tests, skills training resources, job search tools, interview tips, and much more.
[/Indent]

Explains resources for homeowners who are unemployed

Unemployment Resources

Additional Resources

Get in touch with our team — we’re here to help!

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