Consider Your Options
Whether you're trying to keep or sell your home, you have options*. Your eligibility for certain options* will depend on your financial situation and the guidelines of your investor.
Keep Your Home
How It Works
This strategy disperses your overdue payments and fees across a predefined timeframe. The outstanding payments and fees are evenly distributed and incorporated into your regular monthly mortgage payment to assist you in bringing your account up to date.
Advantages
Ensures your account becomes current within a designated period
Allows for the gradual spreading of overdue payments over time
Considerations
The monthly payments will experience a temporary increase compared to your existing payment. An initial down payment may be necessary.
How will this strategy affect my loan and credit report?
Monthly Payment: Your payments will experience a temporary uptick.
Interest Rate: No alterations.
Credit Reporting Impacts: Credit scoring agencies typically view Repayment Plans as an increased credit risk. Consequently, engaging in a Repayment Plan may have a negative impact on your credit score, especially if your mortgage is current or if you have a generally good credit score. However, it's crucial to note that a foreclosure would have a more detrimental effect on your credit score. We will persist in reporting the delinquency and past-due loan status to credit reporting agencies.
How It Works
This plan provides you with the option to temporarily halt or reduce payments over a specified period. Importantly, it is not a deferral of payments.
Advantages
Grants you time to address your hardship and enhance or stabilize your financial situation.
Considerations
The entire past due amount must be repaid at the end of the forbearance period. If repayment is challenging, you may explore options such as applying for a Repayment Plan or Loan Modification.
How will this plan affect my loan and credit reporting?
Monthly Payment: Your payments will experience a temporary reduction or pause.
Interest Rate: No changes.
Credit Reporting Impacts: A Forbearance Plan is generally viewed as an increased credit risk by credit scoring agencies. Engaging in a Forbearance Plan may have a temporary negative impact on your credit score, particularly if your mortgage is current or if you have a generally good credit score. It's essential to note that a foreclosure would have a more detrimental effect on your credit score. The delinquency status of your loan will continue to be reported to credit reporting agencies.
How It Works
A loan modification entails a permanent restructuring of your mortgage or home equity loan, with potential changes to one or more loan terms to bring your account current.
Examples may include:
Reducing the interest rate
Converting the interest rate from variable to fixed
Extending the loan term
Advantages
Enables you to retain homeownership and offers a lasting solution to your existing hardship.
Considerations
A trial payment plan may be required to demonstrate your ability to afford a loan modification.
Not all modifications lead to a lower payment or interest rate.
Clearing all liens and judgments is necessary to proceed with a modification.
How will this plan affect my loan and credit reporting?
Monthly Payment: Your payments may undergo a permanent change based on your specific situation.
Interest Rate: It could increase, remain the same, or decrease, depending on your unique circumstances. Additionally, the loan term may extend.
Credit Reporting Impacts: Typically, a Trial Period Plan (TPP) is required before a permanent loan modification. During this period, we will continue reporting the delinquency status to credit reporting agencies. If permanently modified, your account will be updated accordingly. If not, the TPP notation will be removed. Both the TPP and loan modification may impact your credit score. For more details, visit ConsumerFinance.gov.
Sell or Transfer Your Home
How it Works
This choice enables you to sell your property at fair market value for less than the total amount due on the mortgage or home equity loan. Your investor agrees to accept the proceeds of the sale in exchange for releasing the lien on the property.
Benefits
Avoids the prolonged legal process associated with foreclosure
Pays off a portion of the loan balance, and in some cases, you may qualify for relocation assistance to facilitate your move from the property
Things to Keep in Mind
Depending on your investor or insurer, you may need 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 IRS Form 1099. Consult your tax or financial advisor for more information on how this could impact you
To proceed with a short sale, the title must be free and clear of all liens and judgments
How will this plan impact my loan and credit reporting?
Monthly Payment: Your payments will cease when your property is sold.
Interest Rate: Your loan will be terminated, and payments will cease when your property is sold.
Credit Reporting Impacts: Short Sale transactions are reported to consumer reporting agencies and will likely influence 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 enables you to voluntarily transfer your property to the bank if you are unable to maintain payments and can't sell your home at fair market value.
Benefits
Avoids a prolonged legal process associated with 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 or insurer, you may need 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 IRS Form 1099. Consult your tax or financial advisor for more information on how this could impact you
You may be required to be reviewed for options to keep your home or list your property for sale before being considered for a short sale or deed-in-lieu
To proceed with a deed-in-lieu, the title must be free and clear of all liens and judgments
How will this plan impact my loan and credit reporting?
Monthly Payment: Your payments will cease when the deed-in-lieu is completed.
Interest Rate: Your loan will be terminated, and payments will cease 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.
Get Started with SpringFour
To make finding trustworthy local help easy, we have partnered with SpringFour - whether you're facing rising expenses, unemployment, late loan payments or too much debt. Centier is committed to our clients an dour community. We know many people are facing layoffs, poor health, struggling to make ends meet, or dealing with family troubles.
Find a Housing Counselor
Housing counselors can provide advice on buying a home, renting, defaults, foreclosures, and credit issues. The counseling agencies are approved by the U.S. Department of Housing and Urban Development (HUD) and they can offer independent advice about whether a particular set of mortgage loan terms is a good fit based on your objectives and circumstances, often at little or no cost to you.
Contact Us
Call us today at (219) 755-6116. Centier representatives are available Monday through Friday from 7:00 AM - 5:00 PM. The right option for you depends on your individual circumstances. If you provide all required information and documentation about your situation, we can determine if you qualify for temporary or long-term relief.
Additional Resources
- 877-GET-HOPE (877gethope.org) | Indiana Homeowner Assistance Fund
- Get Homeowner Assistance Funds | Consumer Financial Protection Bureau
- What You Need to Know About Mortgage Forbearance | Consumer Financial Protection Bureau
- Homeowner Assistance Fund | National Council of State Housing Agency
- HUD Homeowner Counseling Resources or HUD's Phone Number: 1-800-569-4287
- SpringFour - SpringFour is an independent company that researches and verifies non-profit as well as government organizations in your area designed to help you become more financially stable.
Property Insurance Claim Frequently Asked Questions
Get answers to your questions about Mortgage Insurance Loss Claims related to mortgage loans and HELOC accounts.
Initial Claim
- Notify Centier Bank of your claim by calling the Loan Workout Department at 1-888-236-8437. We are available Monday – Friday 7:00 AM - 5:00 PM CST
- Depending on the loan requirements and claim amount, we may need you to endorse the check and send it in for deposit.
- Obtaining Endorsement at your local branch will depend on the claim amount and status of your loan. We recommend you call the number above to confirm prior to mailing in your check or visiting a local branch.
- If your claim check is eligible for Branch Endorsement, please visit Centier at https://www.centier.com/locations page to locate a branch near you.
- You also have the option to mail in your Insurance Claim check for endorsement at the address below:
For All Loans:
Centier Bank
ATTN: Loan Workout Dept
600 E 84th Ave
Merrillville, IN 46410
**Please include a copy of the damage claim report & contractor proposal/estimate**
This will provide us with the details to process your claim efficiently.
- Documents and questions can also be emailed to: [email protected]
Due to investor guidelines, we are required to monitor the progress of repairs for large claims or for claims on delinquent loans.
- You can either bring the check to a Centier Bank branch or mail the check with documentation to the following:
Centier Bank
ATTN: Loan Workout Dept
600 E 84th Ave
Merrillville, IN 46410
Contact your insurance company to report the claim. Your insurance company will send an adjuster to your home to assess your property damage, determine a claim settlement, and issue an insurance claim check.
Email: [email protected]
Report damage, upload pictures and documents
Mail, Overnight Mail, or Certified Mail:
Centier Bank
ATTN: Loan Workout Dept
600 E 84th Ave
Merrillville, IN 46410
**Centier Bank recommends sending all insurance checks and documentation by mail with a tracking number. Costs are the responsibility of the borrower(s).**
No, you do not need a Centier Bank checking account to deposit your check. Funds can be held in a check and distributed as needed.
Repair Phase
Centier Bank has a financial interest to ensure the home is repaired to the condition before the property loss.
We will deposit your claim funds into a Centier Bank deposit account or Hold creating cashier checks for your repairs. Claim funds are then released as needed to begin work, contractor request.
The first draw of funds will be released after all necessary forms, insurance and/or contractor documents are received.
- When your repairs are about 95% complete, contact us to request your final inspection. The remaining funds (less inspection fee) will be released once the inspection is complete and the work is confirmed to be 100% complete per the damage claim report.
- Please call/email the Loan Workout Department or Branch when the work is 95% completed.
- These inspections must be completed for insurance claim funds to be released.
Please call the Loan Department at 1-888-236-8437 to speak to a Loan Workout representative or contact your local branch.
We use periodic inspections to confirm the progress of repairs. Our Third-Party Inspector will reach out to the homeowner or their contractor to schedule the inspection appointment.
**Per your loan documents, all inspection fees will be paid from the funds of the insurance damage claim check. You may contact your insurance company for a possible refund.**
General Questions
Payments to public adjusters or attorneys hired to help with an insurance claim are between the borrower and the third party. We are unable to pay public adjusters or attorneys using the claim funds. Any funds remaining after all work is 100% completed, and all contractors are paid will be released back to you. You are responsible for payment to the Public Adjuster or Attorneys hired to assist with your claim.
Please contact your insurance agent for more information. The bank cannot request additional claim funds on your behalf.
- If you wish to use your insurance claim funds to pay off your mortgage, please contact the Loan Workout Department at 1-888-236-8437 to let us know your intention and request a payoff quote. The claim funds must be sufficient to pay off your loan.
If your loan is eligible, we will issue a check in the amount that exceeds your payoff once the loan is paid off and at $0.00 balance.
- The funds issued by the insurance company are for the sole purpose of repairing the damage to the home.
- If claim funds remain after repairs are 100% complete, we can review a request to apply the funds to the loan. If you decide to not repair the property, we will review your loan agreement, and the funds may be applied to the outstanding balance on the loan according to the terms of your mortgage.
- For all consumer loans, please contact the Loan Workout Department at Centier Bank at 1-888-236-8437 for more information.
- For commercial loans, please contact your Commercial Loan Officer for more information.
Disclosures
*This is for educational purposes only and not tax or legal Advice. All loans are subject to credit approval.
