Mortgage Relief Assistance
Resources to Help Avoid Foreclosure
If you are a homeowner facing financial hardship and are having trouble keeping up with your mortgage payments, the following resources may help you to get back on track.
First Northern Bank Mortgage Loan Department
Person-to-person customer service is available during regular business hours Monday through Friday 8:00 am through 5:00 pm by calling (800) 682-8648.
Before you contact us to discuss your options, please prepare the following information:
- Brief explanation of your hardship
- Proof of household income, including your two most recent pay stubs
- Most recent federal tax return, including schedules
If you are self-employed, in addition to the above documents, you will need to provide
- Current income statement
- Balance Sheet
- Statement of owner’s equity
- Six-month Profit and Loss Statement
Department of Housing and Urban Development (HUD)
You may also contact HUD to find a HUD-certified housing counseling agency by calling the toll-free number (800) 569-4287. Additional information may be found at hud.gov.
Be on The Lookout for Mortgage Relief Scams
There has been an increase in bad actors attempting to carry out mortgage relief fraud. Read more about mortgage scams.
Mortgage Relief Assistance for Financial Hardship Due to COVID-19
We’re here for you
As the Coronavirus (COVID-19) pandemic continues to evolve, First Northern Bank’s number one priority is the safety and well-being of our customers, employees and communities. Together, we are working through these unprecedented times and all of us at First Northern Bank stand ready to provide financial access, guidance and support to our customers as we navigate through these challenging times.
Mortgage Relief Available - Payment Assistance Via Short-Term Payment Suspension (Forbearance)
If you’re experiencing financial hardship due to COVID-19 and are unable to make your regular mortgage or home equity payments, we can help. You can request an initial payment suspension — a temporary pause of your loan payments for up to 6 months. At the end of the initial 6 months, if your mortgage is covered by the CARES Act, you may request an additional 6 months of payment suspension for a total of 12 months in accordance with the CARES Act.
This is an option available to provide payment help due to COVID-19 impacts such as:
- Unemployment or underemployment
- Illness preventing you from your normal employment
- Caring for an ill family member that prevents your normal employment
- Decline in income
It’s best to request payment suspension only when you really need it because these payments are not waived or forgiven.
By accepting this short-term payment suspension, you will be ineligible for any new First Northern Bank mortgage product, including a new home loan or a refinance of an existing home loan, until certain conditions are met. Your financial hardship must be over. You must be out of payment suspension. You may also be ineligible for other new First Northern Bank consumer credit products, such as an auto loan or personal loan, until these conditions are met.
During payment suspension:
- We won’t charge late fees
- If your loan was current when you requested payment suspension:
- We won’t report missed payments to the consumer reporting agencies
- If your loan was past-due when you requested payment suspension:
- We will not report any additional missed payments to the consumer reporting agencies during the payment suspension period
- We won’t refer the loan to foreclosure at this time
Please understand that you’ll have to repay suspended payments. If you can make a payment during the suspension – you can do so at any time. This will reduce how much you’ll owe at the end of your loan. If your financial situation changes, you can end payment suspension at any time.
Post-Forbearance Options to Bring Current (Make Up or Pay) Payments That Were Deferred
How and when these deferred payments will be required to be repaid depends on whether your loan is owned by First Northern Bank or Freddie Mac.
Freddie Mac Loans are covered by the CARES Act.
How do you know if your loan is owned by First Northern Bank or Freddie Mac?
Ask us! Call us today at (800) 682-0648 or if it is a local call (707) 648-0226. We will be happy to look up your loan and let you know if it was sold to Freddie Mac or is still owned by First Northern Bank.
Freddie Mac Loans - How and when you will be required to pay back the payments that were deferred, to bring your loan current.
Freddie Mac owned loans are covered by the CARES Act. An initial short-term payment suspension temporarily pauses your obligation to make monthly payments for up to 6 months. At the end of the initial 6 months, if you are still suffering from COVID-related financial hardship, you may request an additional 6 months of payment suspension for a total of 12 months of deferred payments. You must notify us at least 30-days BEFORE your initial 6-month forbearance period ends, if you believe you will need an additional deferred payment period.
Note: Keep in mind that extending your payment deferral (forbearance) period means that you’ll have more to repay at a later time. You should not defer more payments than necessary.
Once your total forbearance (payment deferral) period ends, we will contact you to determine which option is best for you to bring your loan current (pay deferred payments) and resume your regularly scheduled payments. Post-forbearance options to bring your loan current include:
- Full or partial repayment of deferred payments
- Pay off of loan
- Repayment Plan
- Payment Deferral to the end of the Loan
- Flex Loan Modification
Request mortgage or home equity payment suspension or discuss post forbearance options to bring loan current:
- Contact us at 1 (800) 682-8648
First Northern Bank Portfolio Loan – How and when you will be required to pay back the payments that were deferred to bring your loan current.
You may request an initial short-term payment deferral (forbearance). This deferral temporarily pauses your obligation to make monthly payments for up to 6 months. If you choose this option, your deferred payments will be added to the end of your mortgage as a balloon payment. You will be required to sign loan modification documents. At the end of the initial 6 months, you will need to resume making your mortgage or home equity line of credit payments, as originally scheduled. If you are not able to do so, contact us at least 30-days before your payment deferral period ends so that we may discuss your options.
Request mortgage or home equity payment suspension or discuss post-forbearance options:
- Contact us at 1 (800) 682-8648
Automatic payment plans
You’ll need to stop the automatic payments you’re making from bill pay on First Northern Bank Online Banking or with any other financial institution. If you have a plan with us to automatically withdraw your mortgage or home equity payments directly from your checking or savings account, you will need to cancel it right away. You’ll need to set up any automatic payments or plans again once the payment suspension period ends.
Ending the payment suspension early
You can end the payment suspension at any time. If you decide to shorten the plan, or if you decide later that this is not the right solution for you, please contact us. You’ll need to set up any automatic payments or plans again once the payment suspension period ends.
Get free counseling to help with broader financial challenges you may be facing
If you would like information on how to deal with any broader financial challenges you may be facing, reach out to a local HUD-approved, non-profit housing counseling agency. To find an agency near you, go to hud.gov or call 1 (800) 569-4287 (TDD 1-800-877-8339). They can provide free assistance that includes financial education and mortgage help services.
Be sure you avoid anyone who asks for a fee for counseling or a loan modification or asks you to sign over the deed to your home, or to make your mortgage payments to anyone other than First Northern Bank.