Hardship Programs

Loan Modifications for Consumer Loans

If you’re faced with a long-term financial hardship, deferring your loan payments may not be enough. TEGFCU offers refinancing, loan modifications, and workout loans to assist individuals facing prolonged financial challenges.

Refinancing involves rewriting the remaining balance of your current loan with new terms, resulting in a reduced monthly payment amount. Refinancing is subject to credit approval.

Loan modifications typically require a trial period where you will make a designated number of monthly payments at the new payment amount before the new terms are made permanent. This trial period is a way for both you and the lender to assess your ability to meet the payment requirements under the new terms. To be considered for a loan modification, please fill out our Hardship Assistance Package.

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Mortgage Loans

TEGFCU’s mortgage financial hardship options are like our consumer loan options. However, additional requirements are based on your mortgage type and mortgage insurance. 

Reinstatement or Paused Payment paid in a Lump Sum: You may owe a big bill that comes due all at once, the months you skipped plus the current month. If you can afford it, paying off the whole amount you owe is the simplest thing to do. That sounds like a big chunk, but one option is to pay whatever you can during the forbearance to cut down on the amount you owe at the end. Still, we understand not everyone has the money, so there are other options.

Repayment Plan: The second option is to go on a repayment plan. With this, you make your regular mortgage payment plus some extra to pay off the amount you still owe from your forbearance over a set period of time.

Modification: A mortgage loan modification is a written agreement that permanently changes the original terms to make mortgage payments more affordable and is a type of loss mitigation. Modifications may involve extending the number of years you have to repay the loan, reducing your interest rate, adding the overdue amount to the balance of and/ or forbearing or reducing your principal balance. In most cases, you’ll have to complete a trial period plan, often for three to six months, to demonstrate you can afford the new modified amount

Please note: Modifications may require additional services. Therefore, borrowers may be responsible for additional expenses such as title searches and recording fees. Those charges generally must be paid by the borrower at the time the modification is executed.

All requests will be reviewed on a case-by-case basis, taking into consideration both your current and long-term ability to repay.

In the event you do not qualify for assistance and cannot afford your mortgage, a sale, short sale, or deed in lieu of foreclosure may be viable alternatives to foreclosure.

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How to get started:

To be considered for a forbearance or payment modification, you must first inform us about your circumstances and how you are impacted. Approval is not automatic.

Online: Click here to complete an electronic application for assistance.

By Mail: Click here to download an application. Once completed, please mail it to 1 Commerce Street, Poughkeepsie, NY 12603 – ATTN: Collection Department

By Phone: If you are unable to complete the online or PDF application, please call us, and we will mail you a form.

Once your forbearance period is over, we will work with you to determine the best course of action when you’re ready to resume payments.

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Business Loans

If you are interested in talking to someone about hardship assistance for a commercial loan, commercial line of credit, or commercial mortgage, please email Businessloans@tegfcu.com. Be sure to include your:

1. Name
2. Email
3. Phone Number
4. Business Name
5. Business Address
6. A brief summary of how a financial hardship is impacting you.