Member Relief and Support Center

Skip-A-Pay is an account feature that allows you to postpone your loan payment one month into the future to provide you with a little breathing room in case you are running a little short on cash or as other bills come due.

• Use it twice a year per eligible Patelco loan in good standing.
• Easy and quick to take advantage of it; no lengthy application forms required.
• Do it yourself – the self-serve feature is available in Patelco Online™ and Mobile Banking.

While Skip-A-Pay is designed to help alleviate the stress, it’s important to understand the terms and conditions of this account feature, including a $25 fee for each request charge as well as interest on your loan continuing to accrue during the month the payment was skipped.

A payment deferral allows you to defer (or pause) your monthly payments for a short period of time.  Payment deferral is designed for those who face temporary financial hardship and helps keep loan obligations current. This is not intended to address long-term financial hardship.  We offer two payment deferral solutions for our members.

Traditional Deferral

This payment deferral allows members to defer up to two monthly payments. To be considered for a loan deferral, your loan must meet the following requirements:

• The loan must be no more than 60 days past due at the time of the request
• The loan must meet the loan deferral limits as stated above for closed and open-ended obligations
• The loan has not been previously modified under any of the hardship assistance programs

Unemployment Deferral

This program is designed for members who may be experiencing unemployment. Eligible members will receive a three-month deferral period. This may be combined with our Traditional Deferral Program above, for a maximum total deferral of five months. To be eligible:

• Your loan cannot be more than 90 days past due at the time of the request
• You must provide proof of unemployment, along with eligibility for unemployment benefits
• You must not have filed for bankruptcy
• The loan has not been previously modified under any of the hardship assistance programs
• You must not have previously used this program

The Fresh Start Program supports members experiencing financial hardship who are unable to resolve their past-due balance, but have the ability to begin making regular monthly payments.

Under this program, if you make three consecutive minimum monthly payments on time, your loan will be brought current, and your term will be extended.

Here are the eligibility requirements:

• Your loan must be 30+ days past due
• You have not filed for bankruptcy
• You have made at least 12 full payments on the loan since its origination
• You have not used this program in the last 12 months
• You have not used the program more than twice
• Your loan is not charged off
• Your loan is not a workout loan or a mortgage loan

While this program doesn’t erase previous late payments from your credit report, if you qualify, your loan will be brought current, which may help improve your credit score.

The Temporary Payment Reduction Program is a loan modification intended to provide eligible members, who are experiencing a short to mid-term financial hardship, with affordable and sustainable monthly payments. The monthly payment will be reduced 50%, with a 2% interest rate. The reduced payment is for 12 months only and in conclusion, returns the contracted obligation.

A loan will be eligible for the Temporary Payment Reduction Program if all the following criteria are met:

• The hardship is temporary and involuntary, and you must be able to provide hardship documentation.
• Your gross debt ratio (“back-end”) is greater than 45%.
• If this is an auto loan, the collateral must be in your possession. The vehicle registration must be current. You must also provide evidence of insurance and the policy must list Patelco as lienholder.
• The loan has not previously been modified under the Temporary Payment Reduction Program or Permanent Payment Reduction Program.
• The temporary payment term is 12 months.

The Permanent Payment Reduction Program is intended to provide affordable and sustainable monthly payments. An affordable and sustainable monthly payment is achieved by taking specified sequential steps to reduce the interest rate and extend the payment timeframe.

A loan will be eligible for the Permanent Payment Reduction Program if all the following criteria are met:

• The hardship is permanent and involuntary, and you must be able to provide hardship documentation.
• Your housing payment and Patelco’s payment is greater than 38% of total gross monthly income.
• If this is an auto loan, the collateral must be in your possession. The vehicle registration must be current. You must also provide evidence of insurance and the policy must list Patelco as lienholder.
• The loan has not previously been modified under the Permanent Payment Reduction Program.
• A discharged Bankruptcy must reaffirm the debt.

Debt Counseling Program

As a condition of approval for the Permanent Modification, you must provide evidence of completing debt counseling with Balance.

A repayment plan is an arrangement where you agree to repay the loan arrearage in installments while still making regularly scheduled monthly payments.  The repayment plan is designed to assist if you can resolve the loan delinquency over a period of time.

A mortgage loan will be eligible for a repayment plan if it meets the following requirements:

• Proof that the financial hardship that caused the current loan default has since been resolved.
• The ability to make future scheduled loan payments in addition to an amount necessary to cure the outstanding arrearage.
• Mortgage loans currently in foreclosure and bankruptcy are eligible.

A payment deferral allows you to defer up to two monthly payments. Payment deferral is designed for those who face temporary financial hardship, and a payment deferral would help them keep their loan obligation current. Payment deferral is not intended to address long-term financial hardship.

The original interest rate and loan maturity date will remain unchanged. The unpaid interest will be treated separately and added to a 0% interest fee account and due as a final payment at the end of the loan term or at payoff.

This payment deferral program applies to closed and open-ended mortgage loans.

This program provides a temporary reduction of payments on a mortgage loan, followed by an arrangement to cure delinquency. The temporary payment reduction program is designed to assist those who are unemployed or who otherwise are not eligible for the loan modification program. The program is intended to provide those experiencing temporary hardship the time and flexibility to manage the financial challenges affecting their ability to meet the mortgage obligations.

The temporary payment reduction will allow you to make a monthly mortgage payment of 40% of your verified gross household income or $750.00, whichever is the greater amount, for a 6-month period. At the end of the payment reduction period past due amounts are not forgiven, but rather these amounts are addressed through a subsequent repayment plan or loan modification.

To be considered for the temporary payment reduction program, an account must meet the following requirements:

• The loan is a first lien mortgage loan owned and serviced by Patelco Credit Union.
• The subject property is a primary residence or an investment property.
• The loan has existed for at least twelve (12) months.
• The hardship is temporary and involuntary in nature.
• Loan has not been previously modified, and the borrower has not previously received a temporary payment reduction.
• You have not missed more than two monthly payments.
• Property taxes, hazard insurance and homeowners’ association fees must be paid current. If the property taxes are delinquent, you must show written evidence of an approved repayment plan from the County in which the property is located.
• Verified income documented in accordance with the Uniform Borrower Assistance Form.
• You must be able to document a valid short-term hardship by completing the hardship documentation set forth in the Uniform Borrower Assistance Form.

The Permanent Hardship Modification Program is a loan modification process intended to provide affordable and sustainable monthly payments. This is achieved by taking specified sequential steps to bring the total monthly housing payment down to a target between 31% and 38% of the gross monthly income.

A mortgage loan will be eligible for the Permanent Hardship Modification Program if all of the following criteria are met:

• The mortgage loan is owned and serviced by Patelco Credit Union.
• The mortgage loan is delinquent, or default is reasonably foreseeable. Certain mortgage loans currently in bankruptcy and foreclosure are also eligible.
• The subject property is the member’s primary residence
• The qualifying hardship is long-term and involuntary in nature.
• The property is not in a condemned status.
• A discharged bankruptcy must reaffirm the debt.

Debt Counseling Program

As a condition of approval for the Permanent Modification, you must provide evidence of completing debt counseling with Balance.

Short Sale

A short sale involves the creditor releasing the lien against the property in exchange for proceeds from the sale of the property of less than the amount owed. This program allows someone to transition out of their home without going through foreclosure.

A mortgage loan will be eligible for short sale if all the following requirements are met:

• The loan is secured by real property owned and serviced by Patelco Credit Union.
• The mortgage loan is delinquent, or default is reasonably foreseeable. Certain mortgage loans currently in bankruptcy and foreclosure are also eligible.
• You’re able to document a valid financial hardship.
• You may be required to contribute cash or execute a note to mitigate Patelco’s losses if a review of your financial condition indicates that you are able to pay, unless prohibited by law.
• You must complete the short sale packet and provide documentation set forth in the packet.
• The property must be listed for sale in the Multiple Listing Service.
• You may not be acting as the listing or selling agent for the property.

Deed-In-Lieu of Foreclosure

A deed-in-lieu of foreclosure (DIL), also referred to as a “voluntary conveyance,” occurs when a borrower voluntarily transfers title and possession of the property to a creditor to satisfy the mortgage loan debt and to avoid foreclosure.

Under Patelco Credit Union’s workout hierarchy, a DIL can be offered to members that are ineligible for all other foreclosure prevention alternatives.

A mortgage loan may be eligible for a deed-in-lieu of foreclosure if all the following requirements are met:

• The loan is secured by real property owned and serviced by Patelco Credit Union.
• The mortgage loan is delinquent, or default is reasonably foreseeable. Certain mortgage loans currently in bankruptcy and foreclosure are also eligible.
• You must be able to document a valid financial hardship.
• Tried for at least 90 to 120 days to sell the property at fair market value (includes short sale) with the help of a licensed real estate agent but were unsuccessful.