Foreclosure Alternatives

When times are tough, Spectrum Credit Union is here to help.

While homeownership provides a wonderful sense of security, there are times when that sense of security is tested. Many homeowners find themselves affected by circumstances beyond their control (e.g., loss of employment, mortgage interest rate adjustments, stock market losses, etc.), which can lead to difficulty affording a monthly mortgage payment. 

This is a challenging and complex situation to be in, but Spectrum Credit Union is here to help. We’ll conduct a thorough review of your individual circumstances and make recommendations for foreclosure alternatives.

Steps you can take

1. Gather your documentation

Before contacting Spectrum Credit Union to discuss your options for avoiding foreclosure, please gather and be prepared to provide us with copies of the following documents: 

  • Completed Spectrum Credit Union "Borrower Financial Statement"
  • Income verification documents such as your most recent pay stub, Social Security benefit statements, unemployment, retirement, or public assistance earnings; prior year’s W-2s and tax returns (if self-employed)
  • A letter from you outlining why you are unable to make your mortgage payments (i.e., lost your job, severe illness, or other financial hardship)
  • Current mortgage statements
  • Evidence of current insurance on the property securing your loan
  • Evidence that the property taxes on the property securing your loan have been paid and are current
  • Any recent valuations of the property securing your loan, if available (i.e., recent appraisal or current listing agreement if your property is for sale)

2. Call Spectrum Credit Union

With copies of the documentation above in hand, give us a call at 800-782-8782. For those outside the U.S., call 510-251-6000.
If you are unable to afford your monthly loan payments and are facing foreclosure, the following options may be available to you: 

  • Forbearance agreement: Distributes your delinquent payments over a period of time, usually no more than 12 months. The monthly amount is added to the usual mortgage payment. 
    • Brings your account up to date within a specified time frame
    • With a goal in sight, you can move forward knowing your home is secure
  • Loan modification: Adds any past-due interest and escrow amounts to the unpaid principal balance, which is then re-amortized over a new term.
    • Changes the mortgage note itself, giving you a fresh start on managing your home asset
    • Brings your account up to date immediately
  • Short sale: Allows you to sell your home and use the proceeds to pay off the mortgage if you are unable to maintain payments, even if the home’s market value is less than the total amount owed.
    • Avoids the lengthy legal process involved in foreclosure
    • Generally less damaging to your credit rating than foreclosure, if you remain current on your payments through the close of sale
  • Deed in lieu of foreclosure: Allows you to transfer your property voluntarily to Spectrum Credit Union if you are unable to maintain payments and cannot sell the home at market value.
    • Avoids the lengthy legal process involved in foreclosure
    • May be less damaging to your credit rating than foreclosure, if you remain current on your payments through the close of sale


Spectrum Credit Union will work with you to discuss your financial situation and explore options that may be available to you in order to avoid foreclosure. If you wish to designate a HUD-certified housing counseling agency, attorney, or other advisor to discuss these options for the borrower to avoid foreclosure, please fill out and submit "Borrower Designation of Representation" to Spectrum Credit Union. Please note that the Credit Union reserves the right to allow or disallow any of the foregoing options.

HUD-certified housing counseling agencies

If you are facing foreclosure, the U. S. Department of Housing and Urban Development (HUD) can help you obtain housing counseling. Click here to find a HUD-certified housing counseling agency near you or call 800-569-4287 or TTY 800-877-8339.

Additionally, HUD’s "Guide to Avoiding Foreclosure" contains valuable information about what you should do if you are facing foreclosure as well as any precautions you should take.


This notice is provided in accordance with California Civil Code §2923.5(e)(5). Please be advised that Spectrum Credit Union reserves the right to accept or deny any request for foreclosure avoidance in its sole and absolute discretion. The approval of Spectrum Credit Union of any option to avoid foreclosure is on a case-by-case basis and merely calling Spectrum Credit Union to discuss possible alternatives to foreclosure does not guarantee that you will be approved.

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