Avoiding Foreclosure: Special Workout Options for Government-Backed Mortgages

Special foreclosure programs for Fannie Mae, Freddie Mac, FHA, HUD, VA, and RHS loans.

Special workout options are available to you if your mortgage is:

  • owned or guaranteed by the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Association (Freddie Mac)
  • insured by the Federal Housing Administration (FHA), which operates under regulations and guidelines issued by the federal Department of Housing and Urban Development (HUD)
  • guaranteed by the Veterans Administration (VA), or
  • financed by a direct loan from the Rural Housing Service (RHS).

You should know if one of these agencies has purchased, insured, or guaranteed your mortgage, because you will have been informed in writing. But if you don’t remember and don’t want to tear your house upside down looking for the paper­work, ask your housing counselor, mortgage servicer, or lender.

If you are working with a HUD-approved housing counselor. You have all the usual workout options plus some additional ones, giving you a much better chance of working something out that the lender will approve of. You can get help and information about these different options from your counselor.

If you are working directly with your mortgage servicer. Your mortgage servicer should give you information about the special options available for your particular type of mortgage, and even distribute any explanatory materials produced by the governmental entity for its customers.

Freddie Mac. If you run into problems with your mortgage servicer when trying to arrange a workout on a mortgage owned or guaranteed by Freddie Mac, call 800-FREDDIE and ask to speak to someone in the loss mitigation department. These are the people who can assess your situation and either explain the rules for servicers of Freddie Mac mortgages or help you arrange a workout.

Fannie Mae. If you encounter problems with your mortgage servicer when trying to arrange a workout on a mortgage owned or guaranteed by Fannie Mae, call the appropriate regional office, listed below.

Fannie Mae Regional Offices
Midwestern Illinois, Indiana, Iowa, Michigan, Minnesota, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin 312-368-6200
Northeastern Connecticut, Delaware, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Puerto Rico, Rhode Island, Vermont 215-575-1400
Southeastern Alabama, District of Columbia, Florida, Georgia, Kentucky, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia 404-398-6000
Southwestern Arizona, Arkansas, Colorado, Kansas, Louisiana, Missouri, New Mexico, Oklahoma, Texas, Utah 972-773-HOME (4663)
Western Alaska, California, Guam, Hawaii, Idaho, Montana, Nevada, Oregon, Washington, Wyoming 626-396-5100

FHA-insured loans. If you have an FHA-insured loan, your lender must send you a copy of HUD Publication PA-426, How to Avoid Foreclosure, before the 90th day of your delinquency on your mortgage payments. This document will outline all of your workout options for loans insured by the FHA.

Rural Housing Service (RHS) loans. If your loan is guaranteed by the RHS, consult the agency’s Loss Mitigation Servicer User Guide for workout options.

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