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Facing Financial Hardships: Mortgage Payment Relief

Financial hardships

At Flagstar Bank, we understand that unexpected financial hardships can put a strain on even the most carefully managed household budget. If you have recently experienced a financial hardship and can't make your mortgage payment, Flagstar Bank has several financial hardship workout options available that may help you.


A financial hardship could include:

  • Job loss or out-of-state transfer
  • Reduction in hours or rate of pay
  • Illness or disability affecting you or someone in your immediate family
  • Divorce or other marital difficulties
  • Being called to active duty as a member of a military reserve unit

To begin a financial hardship workout, you must complete a loss mitigation application. This can be done using either of the options below:


Option 1: Complete the application online through MyLoans®. Once you have logged in to MyLoans, navigate to loan services in the upper navigation bar, and select Mortgage Payment Relief in the drop down.


Option 2: Print and complete the Loss Mitigation Application, and submit with any supporting documents through one of the following methods:

  • Fax to:
  • Mail to:
    Flagstar Bank
    Loss Mitigation Department
    W-110-2 5151 Corporate Drive
    Troy, MI 48098

If you have any questions, please call us at 800-393-4887, Monday-Friday 8:30 a.m.-9 p.m. ET.  To find a HUD-approved housing counseling agency, please call HUD at 800-569-4287 or visit the HUD counseling website.


Other important things we are doing to help:

  • Flagstar is offering loss mitigation and other hardship solutions authorized by all investors/insurers (FNMA, FHLMC, HUD, USDA, VA).
  • Flagstar strictly adheres to all regulatory requirements, state law, federal law, and investor/insurer guidelines with regard to foreclosure, eviction, and repossession activity.


We continue to monitor all state law, federal law, and investor/insurer guidelines for mortgage relief available to customers.

Common financial hardship options:

How it works:
Temporarily suspends all or a portion of your monthly payment, followed by a formal plan using another option listed here to return your account to a current status.


Best used when:
Your hardship is expected to be short term in nature, or you know that you will be able to pay a particular amount on a specific future date and continue with your payments from that point forward.

Through our partnership with SpringFour, you can find local and state resources to assist with mortgage payments and housing costs.

How it works:
Adds a portion of past due amounts to your regular monthly payment until your account is current.


Best used when:
Your hardship is expected to be short term in nature, and may even be over, and you have the ability to make an increased payment for a short period of time.

How it works:
Allows you to sell your home for its current value, even if it is worth less than what you owe.


Best used when:
You cannot make any payment but want to avoid foreclosure.

How it works:
Makes your payment more affordable by permanently changing one or more of the terms of your original note and mortgage. Delinquent amounts can sometimes be added back into the loan balance.


Best used when:
You can afford a reasonable payment that is less than your current payment, and/or you don't have enough cash to bring your loan current.

How it works:
Transfers title to the property back to us to satisfy the amount you owe.


Best used when:
You cannot make any payment but want to avoid foreclosure, and you have had your home listed for sale for at least 90 days. This option is reserved for the most extreme situations and is subject to investor approval.

How it works:
Xome uses two ways to generate interest in your home—by pairing sellers with experienced local real estate agents and hosting online auctions. If the home sells through the agent, sellers may pay a commission at a discounted rate. However, sellers do not pay a commission—or any out-of-pocket costs—for sales through the online auction. There is also no obligation to accept the winning bid. To learn more about Xome, watch this video on YouTube.


Best used when:
Sellers interested in trying an alternative way to sell their home with the hope of attracting more buyers and a higher sales price.

Interest on the portion of your loan balance that is greater than the fair market value of the dwelling is not tax deductible for Federal income tax purposes. You should consult a tax advisor for further information regarding the deductibility of interest and charges.


All borrowers are subject to qualification, underwriting approval, lender terms and conditions. Terms, conditions, and rates are subject to change without notice.