Hardship Assistance

We understand that every situation is unique, which is why we offer a variety of solutions tailored to your specific needs. In addition to the options mentioned above, we also provide the following alternatives that may help prevent foreclosure:

1. Repayment Plan: If you’ve fallen behind on your mortgage payments due to a temporary setback, we may be able to arrange a repayment plan. This plan allows you to catch up on missed payments by spreading them out over a period of time, easing the burden of a lump sum payment.  Note, however, that interest will continue to accrue at the rate determined under your loan agreement, so with this option, you could end up paying more interest by making payments over time compared to bringing your account current by making one lump sum payment.
2. Loan Refinance: Depending on your circumstances, refinancing your loan could be a viable option. By refinancing, you may be able to secure a lower interest rate or extend the term of your loan, resulting in lower monthly payments and improved affordability.  However, if the loan term is extended under this option, you may end up paying more in total interest charges (even if we agree to reduce your interest rate) because you will be repaying over a longer period of time.
3. Financial Counseling: Sometimes, a little guidance can make a big difference. We offer free financial counseling services to help you better understand your options and develop a personalized plan that may help you manage your mortgage payments more effectively. Mirastar members can get free counseling services from our financial education partner, BALANCE, through their Consumer Credit Counseling Service at (888) 456-2227 or https://mirastarfcu.balancepro.org/.
4. Loan Deferment: In certain situations, such as temporary unemployment or medical emergencies, you may qualify for a loan deferment. With a deferment, you can temporarily postpone making payments on your mortgage loan. This option can provide much-needed relief during times of financial hardship.  Note that interest will continue to accrue during the deferment period, and you will ultimately be required to pay back all postponed payments plus accrued interest. To submit a request for a loan deferment, click here to complete the application. Our team will contact you shortly, typically within the next two business days.
5. Modification: A loan modification is a change made to the terms of an existing loan agreement between a borrower and a lender. It typically occurs when a borrower is experiencing financial hardship and is struggling to make their regular loan payments. The purpose of a loan modification is to make the loan more affordable for the borrower, thereby helping them avoid default or foreclosure.  Depending on the type of modification, you may end up paying more in total interest charges over time compared to your original loan terms.  Because it is important to understand the consequences of each type of loan modification, you should carefully read the disclosures we provide you with related to the loan modification, and you should ask questions so that you can make an informed decision about which option is best for you.

Repayment plans, refinancings, deferments, and modifications are subject to approval by the Credit Union.  Additional terms, conditions, and qualifications may apply.  Please contact us for more information on these additional programs and how they may benefit you. Our knowledgeable staff is here to guide you through the qualification process and provide support every step of the way. Remember, there’s always hope, and together, we can find a solution to overcome your mortgage payment challenges.

Once you submit your application, we ask that you provide the following documentation so that we can accurately assess your financial situation and suggest alternatives designed for your needs. By submitting all the required documents upfront, our experienced team will be better equipped to process your application, which can help to expedite the resolution to your financial hardship.

Here’s what we’ll need from you:

• Borrower Budget Worksheet
• Income statements (pay stubs, W-2 forms, etc.)
• Bank statements showing recent transactions
• Tax returns for the past two years (if applicable)
• Proof of any additional sources of income (rental income, alimony, etc.)
• Documentation of expenses (mortgage statements, utility bills, etc.)
• Proof of hardship (layoff notice, medical bills, etc.)
• Any other relevant financial documents

When you have the above items completed, please submit the package to:

Mirastar Federal Credit Union
P.O. Box 11024
San Jose, CA 95103

Or call us at 408-282-0777. If you have questions or need further assistance, please contact us at the number below.

Mirastar Credit Solutions

408-282-0777