Trouble Paying your non-VHFA Loan

Know your options video

If you are currently having trouble paying your non-VHFA loan, or see the potential for future difficulties due to a life event or hardship, taking action as soon as possible may be the key to saving your home. Every situation is different, but the following steps can help you get started:

  1. Determine who services your loan.
  2. Contact the organization who services your loan. Let them know you are having a difficult time making your payment, and explore potential "loss mitigation" strategies. Your servicer cannot help you if they don't know you are having trouble.
  3. Contact a HUD-Approved Housing Counseling Agency. HUD sponsors counseling agencies who can provide advice and guidance on defaults, modifications, credit issues, and "loss mitigation" options. You can search all HUD-Approved Housing Counseling Agencies in Vermont through the Consumer Financial Protection Bureau website, or you can visit the NeighborWorks Alliance of Vermont website for information about nonprofits in your area with NeighborWorks certified-affordable housing services.
  4. If you experienced a COVID-related hardship and are having trouble paying overdue mortgage and related expenses, learn more about the Vermont Homeowner Assistance Program.

What about the federal programs I have heard about to help me avoid foreclosure? 

Depending on the type of loan you have and your situation, you may be eligible for federal programs that can help you avoid losing your home to foreclosure. For more information, read information from the U.S. Department of Housing and Urban Development, inquire with your loan servicer, or consult with one of the housing counseling agencies described above. Although VHFA loans are not eligible for federal programs regarding loss mitigation, there are other ways you can take action.  

Seeking a refinance to lower your payment? 

VHFA does not offer refinance options. If you are seeking to refinance your VHFA or non-VHFA loan, you will need to contact your existing servicer or a lending organization that offers refinance opportunities.