How it Works

This plan spreads your past due payments and fees over a pre-defined period of time. The past due payments & fees are divided equally and added to your regular monthly mortgage payment to help you bring your account current.

Benefits

• Brings your account up to date within a specified time-frame
• You can spread the past due payments over a period of time

Things to Keep in Mind

The monthly payments will be temporarily higher than your current payment. You may be required to make an initial down payment.

How will this plan impact my loan and credit reporting?

• Monthly Payment: Your payments will temporarily increase.
  
• Interest Rate: No change.
• Credit Reporting Impacts: Credit scoring companies generally consider Repayment Plans an increased credit risk. As a result, entering into a Repayment Plan may adversely affect your credit score, particularly if you are current on your mortgage or otherwise have a good credit score. However, a foreclosure would have a more negative impact to your credit score. We will continue to report the delinquency past-due loan status to the credit reporting agencies.

How it Works

You may be eligible to be reviewed for a partial claim depending on your loan type. A partial claim is an interest-free loan typically provided by the insurer of your loan. The proceeds of the partial claim are paid to your servicer, M&T, to make your past-due payments and bring your loan “current.” A partial claim is secured by your property, just like your mortgage loan.

Benefits

A partial claim comes with no additional monthly payments and is interest-free. You may even be able to move a portion of your mortgage balance to the interest-free partial claim which would help to reduce your monthly mortgage payment and save on interest.

Things to Keep in Mind

A partial claim must be repaid, typically when your home is sold, you refinance your home, or your mortgage loan is eventually paid off. It cannot be repaid in installments. A single payment, in full, is required.

How it Works

This plan allows you to temporarily pause or reduce payments over a period of time. This is not a deferral of the payments.

Benefits

Gives you time to resolve your hardship and improve or stabilize your financial situation.

Things to Keep in Mind

The total past due amount will need to be re-paid at the end of the forbearance period. If you are not able to pay the past due amount, you may be able to apply for a Repayment Plan or Loan Modification.

How will this plan impact my loan and credit reporting?

• Monthly Payment: Your payments will be temporarily reduced or paused.
  
• Interest Rate: No change.
• Credit Reporting Impacts: Credit scoring companies generally consider a Forbearance Plan an increased credit risk. As a result, entering into a Forbearance Plan may adversely affect your credit score, particularly if you are current on your mortgage or otherwise have a good credit score. However, a foreclosure would have a more negative impact to your credit score. We will continue to report the delinquency status of your loan to the credit reporting agencies.

How it Works

A loan modification is a permanent restructuring of your mortgage/home equity loan where one or more of the terms of your loan may be changed to bring your account current.

Some examples may include:

• Reducing the interest rate
• Converting the interest rate from a variable to a fixed rate
• Extending the length of the loan term

Benefits

Allows you to continue to own your home and provides a permanent solution to your existing hardship.

Things to Keep in Mind

• A trial payment plan may be required to prove you can afford a loan modification
• Not all modifications result in a lower payment or interest rate
• In order to move forward with a modification, the title must be free and clear of all liens and judgements

How will this plan impact my loan and credit reporting?

• Monthly Payment: Your payments may permanently change based on your specific situation.
• Interest Rate: This could increase, stay the same, or decrease depending on your unique situation. Also, your term may extend.
• Credit Reporting Impacts: Typically with a loan modification, you must first enter into a Trial Period Plan (TPP) to prove you are capable of permanently modifying your mortgage payments. If you do need to enter into a TPP, we will continue to report the delinquency status of your loan to the credit reporting agencies, as well as your entry into a TPP in accordance with applicable law. If your loan is then permanently modified, your account will be updated with the credit reporting agencies to reflect the modification. If the loan is not modified, the TPP notation that was reported to the credit reporting agencies will be removed.  A TPP and loan modification may result in your credit score being adversely affected. For more information about your credit score, visit ConsumerFinance.gov.

How it Works

This option allows you to sell your property at fair market value for less than the total amount due on the mortgage/home equity loan. Your investor agrees to accept the proceeds of the sale in exchange for releasing the lien on the property.

Benefits

• Avoids a lengthy legal process involved in a foreclosure
• A portion of the loan balance is paid off, and in some cases, you may be eligible to receive relocation assistance to help you move out of the property

Things to Keep in Mind

• Depending on your investor/insurer, you may be required to contribute or repay a portion of the remaining loan balance
• If required by the IRS, we will report the remaining balance as income on the IRS Form 1099. Please ask your tax or financial advisor for more information on how this could affect you
• In order to move forward with a short sale, the title must be fee and clear of all liens and judgements

How will this plan impact my loan and credit reporting?

• Monthly Payment: Your payments will end when your property is sold.
• Interest Rate: Your loan will be terminated and payments will end when your property is sold.
• Credit Reporting Impacts: Short Sale transactions are reported to consumer reporting agencies and will likely affect your ability to obtain another Mortgage and other types of credit.
• Tax Implications: Please consult a tax advisor to discuss potential tax consequences.

How it Works

This plan allows you to transfer your property voluntarily to M&T Bank if you are unable to maintain payments and can’t sell your home at fair market value.

Benefits

• Avoids a lengthy legal process involved in a foreclosure
• In some cases, you may be eligible to receive relocation assistance to help you move out of the property

Things to Keep in Mind

• Depending on your investor/insurer, you may be required to contribute or repay a portion of the remaining loan balance
• If required by the IRS, we will report the remaining balance as income on the IRS Form 1099. Please ask your tax or financial advisor for more information on how this could affect you
• You may be required to be reviewed for the options to keep your home, or list your property for sale before being reviewed for a short sale or deed-in-lieu
• In order to move forward with a deed-in-lieu, the title must be free and clear of all liens and judgements

How will this plan impact my loan and credit reporting?

• Monthly Payment: Your payments will end when the deed-in-lieu is completed.
• Interest Rate: Your loan will be terminated and payments will end when the deed-in-lieu is completed.
• Credit Reporting Impacts: If a Deed-in-Lieu is completed, we will follow standard industry practice and report to the major credit reporting agencies that a Deed-in-Lieu was completed.
• Tax Implications: Please consult a tax advisor to discuss potential tax consequences.