Page Updated September 27, 2021

Homeowner Assistance Fund (HAF) Program Available

The Federal HAF program is ran by THDA for Tennessee Homeowners. Visit: THDA.org for more information. We have had many VMLS borrowers approved for the program by having their mortgages paid current and up to 6 months of continued mortgage payments to assist through a Covid-19 Hardship.


We at Volunteer Mortgage Loan Servicing (VMLS) have been closely monitoring the advisories regarding the Coronavirus (Covid-19). As it has always been, the safety and security of our customers and team members remain our highest priority. Our hearts and thoughts go out to the people who have been affected by this unprecedented event.

At this time, our Nashville office is closed to the public.

To contact us, please utilize our electronic communication methods:
Email: custserv@volservicing.com or www.volservicing.com/contact.

Or call 844-865-7378.

We urge you to set up a free online account if you have not already. There is never a charge to make your payment online.

We encourage our customers paying through bank bill pay to switch to AutoPay or set up their monthly payments online.

Recommended Payment Methods during this time:

  • Automatic Payment (ACH), Monthly AutoPay: No fee. Set up and manage on our volservicing.com payment site
  • Online payment at volservicing.com: No fee – allows delinquent and partial payments
  • MoneyGram: Receive Code 15907: $3.95 fee
  • IVR phone (Interactive Voice Response) payment: $3.95 fee
  • Agent Assisted Pay by Phone: $5.95 fee
  • Check by mail: PO Box 305170, Nashville, TN 37230-5170: No fee

We understand these times are challenging. We are focused on how the coronavirus is impacting our VMLS customers and team members. Thank you for your understanding and your support to protect the most vulnerable Tennesseans.

Options for homeowners facing a Covid-19 Hardship:

Act quickly to start a CARES Act Forbearance. Mortgage insurers like FHA and USDA have a deadline to start a Forbearance. If you are suffering a hardship, please call to enter a Forbearance before this option goes away.

FHA Covid-19 Forbearance Period, Based on the date of the Initial Covid-19 Forbearance

(Table as of October 1, 2021)

Initial Forbearance Start Date Initial Forbearance Period Additional Forbearance Period Forbearance Extension Maximum Forbearance Period*
March 1, 2020 - June 30, 2020 Up to 6 months Up to 6 months Up to 6 months (in 3 month increments) Up to 18 months
July 1, 2020 - Sept 30, 2020 Up to 6 months Up to 6 months Up to 3 months Up to 15 months
Oct 1, 2020 - June 30, 2021 Up to 6 months Up to 6 months 0 Up to 12 months
July 1, 2021 - Sept 30, 2021 Up to 6 months Up to 6 months 0 Up to 12 months
Oct 1, 2021 - End of the Covid-19 National Emergency Up to 6 months Up to 6 months (if initial forbearance will be exhausted & expires during Covid-19 National Emergency) 0 Up to 12 months (if borrower is eligible for the additional Covid-19 Forbearance Period)
*No Covid-19 Forbearance Period may extend beyond 6 months after the end of the Covid-19 National Emergency or September 30, 2022, whichever is later.

We are here to help.

If you have been affected by the Coronavirus and need help maintaining your payments, please contact us. Not able to call, a one page Application and Agreement can be found here.

All VMLS loans are eligible to participate in the CARES Act Mortgage Relief Program. To participate in the CARES Act Forbearance, please call VMLS and we can do a verbal Forbearance agreement over the phone. You may also request a Covid-19 Forbearance Package by emailing custserv@volservicing.com. Or by filling out the Application and Agreement linked above and returning it to VMLS by email, fax, or mail. Signature on the Agreement is your certification of financial hardship caused by Covid-19. The information provided in the one page Application will assist us to proceed quickly with reviewing you for eligible programs following the forbearance period to cure the default.

We have Housing Counselors available to answer Loss Mitigation questions or assist with filling out the Loss Mitigation Package. Email: HUDcounseling@thda.org

What is a Forbearance?

A forbearance is an Agreement that allows you to pause or reduce your mortgage payments for a limited period of time. Forbearance does not erase what you owe; you will have to repay any missed or reduced payments in the future. You will not have to repay it all at once unless you are can do so.

You can and should make payments as you are able during your forbearance period. Full or partial payments made during the forbearance plan will not void the Agreement nor make you ineligible for an extension. We understand that using stimulus funds or unemployment funds to pay your bills does not return your regular monthly income. Partial payments can be made online, check mailed to our PO Box, or through MoneyGram. We are also able to accept partial payments by phone, agent assisted pay by phone fees will apply.

Under the CARES Act, an ongoing Covid-19 hardship can extend the forbearance. VMLS is offering 3 month forbearance periods at a time. We are optimistic about the economic future. Anytime during your 3 month forbearance periods, you can and should notify VMLS if your income returns and you can resume regular monthly payments. Before the end of the 3 month forbearance period, you can attest to a continued Covid-19 hardship if a 3 month extension is needed.

During the forbearance period, VMLS will not assess late fees, order inspections, or report negative credit reporting. We will continue monthly contact attempts by phone or email to check in.

What happens after a Forbearance?

When your Covid-19 hardship concludes and you can make regular monthly payments, notify VMLS you are ready to move forward with curing the default.

The options to cure the default will depend on the type of mortgage you have – FHA, VA, USDA RHS, Conventional, and Freddie Mac Conventional. The loan type options will further depend on the status of your loan at the time of your Covid-19 hardship. Some loan types will require a full loss mitigation package so we can review our financials in more detail to ensure we are putting you on the best possible plan to make your home affordable.

Additional eligibility requirements, terms, and conditions may apply beyond the summaries provided below. Your situation will be reviewed with a loan counselor at the end of your forbearance. We will help you find the best available solution for your loan.

FHA LOANS:

Once you can resume making regular monthly mortgage payments, you can receive an FHA Covid-19 streamlined loss mitigation option. You will not need to provide full financials and you will not need to enter into a Trial Payment Plan, just attest that you can make regular payments and make them.

VMLS will review all FHA loans for a Covid-19 Advance Loan Modification (ALM). If your loan qualifies for an ALM, you will receive notice from us and receive modification documents mailed to your home. To qualify for an ALM, your FHA loan must be at least 90 days delinquent, and the modification must reduce your Principal & Interest payment by at least 25%. The modification extends the term of the mortgage back out to 360 months and uses the published PMMS interest rate.

The FHA Covid-19 Recovery Standalone Partial Claim is the most common option. A Partial Claim is a Jr Lien with no payments and no interest, in the amount of the Principal, Interest, and Escrow needed to bring your account current. You will need to sign a Note held by HUD and a Deed of Trust which will also need to be notarized and VMLS will record with your County’s Register of Deeds. When the Note and Deed are returned, we will receive your delinquent payments from HUD to bring your loan current. HUD will require repayment of the Partial Claim amount in full when you pay the Sr Lien mortgage in full through refinance, sale of property, or maturity.

FHA has limits on the amount of total Covid-19 Recovery Partial Claim funds available. The calculation is based on your Principal Balance at the time of the start of the default. The maximum cumulative value of all Partial Claims paid concerning a Mortgage must not exceed 25% of your unpaid principal balance. The value is established at the time of payment of the initial (first) Partial Claim. This means that if you have had a previous Partial Claim, you will have fewer funds available to cure this default. Also, using the Partial Claim funds to cure this default will set your available amount and only the remaining balance will be available if you need future loss mitigation assistance for future hardships. This might seem complicated; we will do all of the math for you and explain your details to you at the end of your forbearance so you fully understand this option.

If you do not have enough Partial Claim funds available to cure your default and/or you now require a payment reduction to make ongoing mortgage payments, you will be reviewed for a Covid-19 Recovery Modification. These options will include all remaining Partial Claim funds to put towards the amount due and modify your mortgage by extending the term back out to 360 months and use an interest rate no greater than the published PMMS Rate for 30 year fixed mortgages.

For borrowers unable to remain in their home, two Covid-19 Home Disposition Options have been made available:

  • Covid-19 Pre-Foreclosure Sale
  • Covid-19 Deed in Lieu of Foreclosure

USDA RURAL HOUSING LOANS:

The COVID-19 Special Relief Alternatives are immediately available and will remain in effect until December 31, 2022. To qualify, the borrower must occupy the property; was not greater than 120 days past due on March 1, 2020; and, received an initial forbearance due to a COVID-19 related hardship before September 30, 2021.

If you have an USDA RHS loan that was current before your Covid-19 hardship and you can resume regular payments, USDA RHS advises the lender to offer a written repayment plan to resolve any amount due or at the borrower’s request, extend the loan term for a period that is at least the length of the forbearance. If you chose to extend the loan term, you will be required to sign a Modification Agreement and a Modified Deed of Trust which will also need to be notarized, and VMLS will record with your County’s Register of Deeds. The new term cannot exceed 360 months. Extending the loan term does not capitalize required escrow payments. If you are unable to bring your escrow current through a payment plan, you will need to be reviewed for a loan modification.

If you now require a payment reduction to make ongoing mortgage payments, you will be reviewed for a Covid-19 Special Relief Measure to establish a target payment. These options will include modifying your mortgage by extending the term back out up to 360 months and use an interest rate no greater than the published PMMS Rate for 30 year fixed mortgages. If the modification does not achieve the target payment, a Mortgage Recovery Advance (MRA) is available. A MRA is a Jr Lien with no payments and no interest, in the amount of the Principal, Interest, and/or Escrow needed to bring your monthly payment to the target amount. You will need to sign a Note held by USDA and a Deed of Trust which will also need to be notarized and VMLS will record with your County’s Register of Deeds. When the Note and Deed are returned, we will receive your delinquent payments from USDA to bring your loan current. USDA will require repayment of the Partial Claim amount in full when you pay the Sr Lien mortgage in full through refinance, sale of property, or maturity.

If you have an USDA RHS loan that was greater than 120 days past due as of March 1, 2020 or the loan was closed on or after March 1, 2020, you will need to submit a full loss mitigation package to be reviewed for the standard USDA RHS loss mitigation options. The options include a repayment plan, loan modification, or a Mortgage Recovery Advance (MRA).

A Loss Mitigation Package can be found on our website: https://volservicing.com/helping-homeowners-succeed/.

VA LOANS:

The VA has authorized the use of a VA Disaster Modification.

If you have a VA loan that was current before your Covid-19 hardship, is at least 60 days delinquent after forbearance, at least 12 monthly payments have been paid on the loan in total, and the loan has not been modified within 3 years or more than 3 times during the life of the loan, the VA is offering the use of the Disaster Modification. You do not need to submit a loss mitigation package but you will need to participate in a 3 month Trial Payment Plan for the amount of your modified payment capitalizing the arrears. You may qualify for an interest rate reduction with this plan depending on the published rate at that time, we will not increase your interest rate. After successfully completing the 3 month Trial Payment Plan, you will need to sign a Modification Agreement and a Modified Deed of Trust which will also need to be notarized, and VMLS will record with your County’s Register of Deeds. The new term cannot exceed 360 months.

If you have a VA loan that was not current before your Covid-19 hardship, you will need to submit a full loss mitigation package to be reviewed for the standard VA loss mitigation options. The options include a repayment plan or loan modification.

A Loss Mitigation Package can be found on our website: https://volservicing.com/helping-homeowners-succeed/.

CONVENTIONAL LOANS Freddie Mac or Private Mortgage Insurance:

If you have a conventional loan with Private Mortgage Insurance, you are eligible to participate in the Freddie Mac Covid-19 Options.

If you have a Conventional PMI loan and you were current or less than 2 months delinquent in March 2020, you have a couple of options based on your delinquency. The Covid-19 Payment Deferral can defer up to 15 months of missed payments during the forbearance. These deferred payments are placed in a non-interest bearing balance owed in full upon sale or transfer of the property, refinance or payoff of the mortgage, or at maturity of the loan.

If you have a Conventional PMI loan and you were current or less than 2 months delinquent in March 2020, but do not qualify or want to use the payment deferment option, owner occupied, and you are not more than 12 payments delinquent, you will be reviewed for an Extend Modification. The Extend Modification extends the loan term for a period that is at least the length of the forbearance. If you chose to extend the loan term, you will participate in a 3 month Trial Payment Plan, be required to sign a Modification Agreement and a Modified Deed of Trust which will also need to be notarized, and VMLS will record with your County’s Register of Deeds. The new term cannot exceed 360 months. Extending the loan term does not capitalize on your required escrow payments. If you are unable to bring your escrow current through a payment plan, you will need to be reviewed for a capitalized loan modification.

If you have a Conventional PMI loan that was not current before your Covid-19 hardship, you will need to submit a full loss mitigation package to be reviewed for the standard loss mitigation options. The options include a repayment plan or loan modification.

A Loss Mitigation Package can be found on our website: https://volservicing.com/helping-homeowners-succeed/.

Foreclosure and Eviction Moratorium

VMLS will not have any foreclosure sales between March 18 and May 18, 2020. No new loans will be reviewed for foreclosure referral to an attorney before May 18, 2020. Vacant or abandoned properties resumed foreclosure action on May 19, 2020. Foreclosure moratoriums end July 30, 2021. If you have a Covid-19 hardship and need additional time beyond the foreclosure moratorium, please contact VMLS.

We have also placed Evictions on hold through September 30, 2021. Did you know that we offer Cash for Keys? If you are still living in a home foreclosed on by VMLS before March 18, you can request Cash for Keys to leave your home in broom swept condition. We will allow additional time for you to safely move during the Covid-19 event. If you are interested in learning more about our Cash for Keys program, please email custserv@volservicing.com.

Be Aware of Scams

Scammers often take advantage of vulnerable consumers during disasters and financial shocks. In addition to coronavirus-related scams, be aware of scams that falsely promise financial relief from your mortgage loan, or foreclosure.

We do not charge you to participate in any of our loss mitigation programs or to work directly with a HUD Certified Housing Counselor.

We will not make harsh collection calls or leave loan details or default language on your voicemail.

All of our payment methods are listed on our website. We do not accept Credit or Debit Cards, or any other type of payment card.

VMLS does not use third party collection vendors and VMLS does not sell our collection debt.

VMLS does use a third party Loss Mitigation firm once you have applied for Loss Mitigation Assistance, this does not include the Covid-19 Forbearance. You will be referred to our Loss Mitigation vendor only when you submit a Loss Mitigation package for non Covid-19 defaults.

The FHA Covid-19 Advance Loan Modification (ALM) is an option for all FHA loans are reviewed by VMLS. You may receive ALM documents in the mail even if you never contacted us requesting assistance. All ALM documents will be sent with a return address: 404 James Robertson Pkwy, Ste 1450, Nashville, TN 37219-1536. If you receive Loan Modification documents in the mail and are unsure if they are a scam, please contact us immediately.

If you receive a call from a person stating they are from VMLS using threatening language or demanding a payment type other than those listed on our website, please hang up and call us at 1-844-865-7378 to report this information.