Department Of Commerce

Mortgage FAQs

How do I make a payment?
Payments can be submitted by mail, hand delivery, phone or automatic bank draft. Online payments are coming soon. For more information, please see page 1 of the Welcome Packet or visit the borrower portal.

When is my payment considered late?
Payment is due on the first day of each month. Late charges are assessed when payments are not received by 3:00 p.m. on the 16th day of each month. Postmarks are not considered when determining late payments.

What if my payment is going to be late or I cannot make my monthly payment?
Please contact us immediately at 855.841.2799 or by email. Our Loan Servicing Specialists can connect you with appropriate resources, including a list of HUD Approved Counseling Agencies.

Specialists will also outline potential options available, which vary based on the insurer of your loan.

What happens when I miss a mortgage payment?
Missing a mortgage payment is serious and can lead to foreclosure. Foreclosure is the legal repossession of the property by the servicer, resulting in the borrower(s) required to vacate their home. Additionally, if the borrower(s) owes more than the property is worth, they could be found liable to the insurer of the loan for the additional amount under a deficiency judgment. Foreclosures and deficiency judgments can significantly and negatively impact the borrower(s) credit and ability to qualify for a home loan in the future.

What should I do when I miss a mortgage payment?
Please read the letters you receive from Montana Board of Housing’s loan servicing department closely. Our Loss Mitigation Specialists are trained to assist borrower(s) who may be struggling to make their mortgage payments. Our Specialists will need details about your situation in order to assist you properly. Please maintain open lines of communication, and cooperate in providing monthly income and expense information upon request. We understand sharing details about your personal situation may be difficult, but without a full understanding, our Specialist may not be able to help you effectively. Some of the assistance available requires the borrower(s) to stay in the home, so please do not abandon your property.

What are my options?
For FHA loans, please review the Save Your Home: Tips to Avoid Foreclosure brochure.
Loss Mitigation Specialists can discuss potential options for other insured loans, such as USDA, VA, HUD 184 and Conventional. This options may include:

Forbearance and/or Repayment Plan – Borrower(s) experiencing a recent decrease in income or increase in living expenses may be able to enter into a forbearance and/or repayment plan providing a temporary reduction or suspension of payments. Borrower(s) will be required to demonstrate an ability to meet requirements of repaying the arrearage.

Mortgage Modification – Borrower(s) who have overcome a financial problem and can afford a new payment amount may be able to finance the mortgage and/or extend the mortgage term. This option can help borrower(s) with a reduced monthly payment, enabling them to catch up on delinquent arrears.

Pre-foreclosure Sale – Borrower(s) with loans in default may have the ability to sell their home within a short period of time if a new appraisal is acquired demonstrating if the home value is compliant with HUD guidelines to sell their property for less than the amount needed to pay off their mortgage. This option prevents foreclosure.

Deed-in-lieu of foreclosure – Borrower(s) in default who do not qualify for any other options may, as a last resort, opt to give the property back to the servicer. Foreclosure has a significant and negative impact on credit, so while this approach will not allow the borrower(s) to remain in the home, it will be less damaging on the borrower(s) credit.

The availability of these options varies based on the insurer of the loan and the borrower(s) specific situation. In order to determine whether the borrower(s) qualify, a Request for Mortgage Assistance (RMA) packet will need to be completed and sent to Montana Board of Housing. Loss Mitigation Specialists are trained and experienced in dealing with every situation.

OTHER RESOURCES

What are Mortgage Relief Scams?
Mortgage Relief Scams is a broad term applied to a variety of deceptive and potentially illegal methods employed by scam artists to capitalize and take advantage of distressed homeowners. The Federal Trade Commission website provides an overview of how these scams work, what your rights are, scam warning signs and resources for assistance.

Am I able to rent my home?
No, unless your situation falls within one allowable exception. Montana Board of Housing loans originated since 1982 have an owner-occupancy requirement. The Uniform Rider to the Trust Indenture specifically states that the home will not be rented. The only exception is if a borrower(s) is suffering from undue hardship and the situation is beyond the borrower’s control. When a situation like this comes to Montana Board of Housing’s attention, our loan servicing specialists must send a letter to the borrower(s) inquiring about the borrower’s intention. After we receive the borrower’s response, the letter and a copy of the listing agreement (or however the property is being marketed) must be sent to the Montana Board of Housing. They determine whether the reason for noncompliance with the owner-occupancy requirement is within established IRS guidelines. Find the Occupancy Request Waiver Form here.