Today I want to give you information about mortgage forbearance and the options what that you can do is you may know or may not know that President Trump signed CARES ACT Bill so that gives you some features some options that about your mortgage payment:
What is a mortgage forbearance agreement? : when you lose your job or income it can struggle to keep your mortgage payment so right now due to Covid-19 most people were having time to pay mortgage payment so homeowners can request mortgage forbearance agreement to stop may make paying their mortgage payments temporarily if you are dealing with financial hardship and with this bill actually this it gives you up to 12 months to stop your payment.
How does it work? if you’re eligible your mortgage servicer will provide you with the mortgage for various agreement outlining the terms it includes information about for variance term how to pay how your payment history will be reported to the credit bureau or how you skip the payments will be repaid once the period ends How are you going to apply? Basically, you need to call and contact with your service provider with this CARES ACT, it includes forbearance options with these features: You have right to request 180-day mortgage forbearance and 180 days an extension so up to 12 months and waiver of late fees for borrowers with the forbearance agreement, suspensions of late payment reporting to the credit bureau and more affordable payment options after the forbearance ends and this actual relief applies to homeowners with conventional loans owned by Fannie Mae and Freddie Mac also FHA loan and VA loan and also USDA loan because you need to make in order to do that you need to call and make an oral explanation to your service provider but later they will request some documentation from you so keep in mind that and also for this act if you are late payment and missed payment they are not going to notify credit-card bureaus as well
What type of forbearance plan that I have? Actually, you have three options
- You can stop payment on a set a time and make payments in the lump sum let up to six months. Let’s say you have a mortgage payment for 2000 per month and you can call your mortgage service provider and let them know that you have a financial hardship and you’re not able to pay for six months and you will pay at the end of the sixth month is (2000*6=$12000) twelve thousand dollars altogether and also interest rate occurs on missed payments
- You can reduce your payments each month to set a time then pay back payments in the lump sum again. Let’s say again you have a $2000 mortgage payment every month and you will say mortgage server provider that you are going to pay $1000 per six months after the six months the remaining balance ($12000-$6000= $6000) that you need to pay six months $6,000 you need to pay altogether like a balloon payment plus interest rate occur
- Stop payments for a set at a time then add the past payments to the end of the mortgage in this way you don’t have any balloon payment at the end of the forbearance period and gives you more time to pay back the missed payments of course interest rate will occur and of course, it will extend the life of the loan and increase the loan of the balance but still, it’s a good option because you’re not going to pay altogether some amount of money What about the escrow account this period let’s say it’s a six month again the lender will continue to make those payments until the forbearance period ends but at the end of it probably you will have a shortage so you and your service provider will need to work together figure it out how are you going to pay this amount. Probably they will add next year’s payment divided by twelve and you will pay slowly.
What if you are not paying your monthly mortgage payments already, I am still eligible? Unfortunately, no to eligible for this mortgage program you need to be pay on time. if you are late you can do a loan modification loan but to do that actually you should be a sixty-day or more time late on your mortgage payment. Loan modification allows you to change the original terms of your loan permanently with a mortgage modification options may include the terms of your loan or your lowering your leg and reducing your monthly payment so you can think about this option too if you’re late or you can say you can do.
What if mortgage forbearance is not for me? You can do mortgage refinances and that help you to ease the financial burden if you need a little extra room in your budget or let’s say you need the money what you can do if you have an equity in your home mortgage you can sell your home and you can move to the renting or living with the family and another option is short sale this option allows you to sell your home for less than its market value and ask the lender to forgive the difference but the lender needs to be agree on that in order before putting the market as a short sale please speak with your lender and talk with your Realtor about it and put on the market another one is the last option actually deed in lieu of foreclosure also called the cash for keys transaction and it lets you transfer ownership of your home over to your lender as long as they approve the request and also I just want to remind you that be aware of the mortgage relief scams some people may call you that you know they might say they’re calling you mortgage relief organizations or attorney or agency program please never pay upfront for those people over the phone never give your personal information like social security number or date of birth something like that and if you think if you believe you’ve been that victim a mortgage relief scam please contact the Federal Trade Commission let’s see what can do for you so that’s it for today I hope I give you valuable information and if you have any questions and concerns please give me a call or you can email me and you can visit my website either way if you contact with me I will be happy to assist you.
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