Foreclosure Alternatives


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If you’re at risk of defaulting on your mortgage payments, Chevron Federal Credit Union can help with foreclosure alternatives.

For most, owning a home offers a sense of security. Unfortunately, circumstances beyond your control can negatively affect that sense of security (e.g., loss of employment, mortgage interest rate adjustments, stock market losses, etc.) and make it challenging to afford a monthly mortgage payment. 

If you find yourself in this situation, Chevron Credit Union is here to help. We’ll assist you in reviewing your financial situation and exploring options that may be available as an alternative to foreclosure. 

What you should do

1. Gather documentation

Before calling the Credit Union to discuss what options may be available to you to avoid foreclosure, please collect and be prepared to provide us with copies of the following documents:

  • Completed Chevron Federal 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 Chevron Federal Credit Union

With copies of the documentation above in hand, give us a call at 800-232-8101. For those outside the U.S., call 510-627-5000.

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. This brings your account up to date within a specified time frame. With a goal in sight, you can move forward knowing that 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. This changes the mortgage note itself, giving you a fresh start on managing your home asset, and 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. This avoids the lengthy legal process involved in foreclosure and will generally be less damaging to your credit rating than a 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 Chevron Federal Credit Union if you are unable to maintain payments and cannot sell the home at market value. This avoids the lengthy legal process involved in a foreclosure and may be less damaging to your credit rating than foreclosure if you remain current on your payments through the transfer date.

Chevron Federal 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 Chevron Federal 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 Chevron Federal Credit Union reserves the right to accept or deny any request for foreclosure avoidance in its sole and absolute discretion. The approval of Chevron Federal Credit Union of any option to avoid foreclosure is on a case-by-case basis and merely calling Chevron Federal Credit Union to discuss possible alternatives to foreclosure does not guarantee that you will be approved.

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