Financial hardship

The information provided here is for borrowers who are experiencing financial hardship that is making it difficult to afford their mortgage payments, property tax payments, or other expenses associated with homeownership. Please complete the Hardship Application and submit it to the Office of Loan Programs.

Forms for submission

  • Hardship Application (pdf) - by signing page 2 of the Hardship Application, you are authorizing the University to order a credit report. You will be charged a $15 fee for the credit report that must be submitted with the Hardship Application (payable to UC Regents).

For some assistance options, the Office of Loan Programs will require a Broker's Price Opinion of Value or a full appraisal of your property by a University-approved appraiser. If an appraisal is required, you will be responsible for paying the appraisal fee.

Upon receipt of the requested documentation, the Office of Loan Programs will review your situation.

Potential assistance options

  • The University has an Interest Only MOP loan product (IO-MOP). You may be eligible for a Modification Agreement to convert your standard MOP loan to an IO-MOP for a period of time. The following limitations apply:
    • Your loan must be a Standard MOP loan.
    • If your loan has been sold to an investor, the requested change is subject to investor approval. Some investors are not willing to approve any modifications.
    • The current loan-to-value ratio of your loan (defined as the outstanding loan balance divided by the current appraised value) cannot exceed 110%.
    • The interest-only period of an IO-MOP cannot be longer than 10 years, and you must have at least a 30 year amortization period remaining after the interest-only period. If you currently have a 30 year loan, the University may extend your term to a maximum term of 40 years to allow for an interest only period.
    • There is a .25% interest rate premium for IO-MOP loans.
    • The loan modification must coincide with the Anniversary Date of your loan. This means that it may be several months before the modification can be completed.

    • See the IO-MOP program brochure (pdf) for more information.

  • It may be possible to extend the repayment term of your loan in order to reduce your monthly payments. The following limitations apply:
    • The initial term of your loan must be less than 40 years.
    • The total term of your loan after the extension cannot exceed 40 years.
  • Under some circumstances, the University may be able to defer up to 3 monthly payments, with repayment over the following 6 months. The following limitations apply:
    • This option is only available to borrowers who have short-term financial difficulty that will be resolved within a few months.
    • Once the repayment period begins, you will be paying your regular monthly payment, plus ½ of a deferred monthly payment. Prior to approval of this option, you will need to demonstrate the ability to make these increased payments after the deferred period.

Eligibility requirements/criteria

  • If your loan has been sold to an investor, the investor must approve any requested exceptions or modifications.
  • The Office of Loan Programs may require a Broker’s Price Opinion by a licensed real estate agent and/or an appraisal completed by a University Approved Appraiser in order to evaluate requests for exceptions to policy.

For additional assistance, you can also contact the Department of Housing and Urban Development (HUD) toll free at 1-800-569-4287 to find a HUD-certified housing counseling agency.