04/13/2020
If you have mortgage questions please ask. Below is what one lender had on their website. Keep in mind if you need assistance Forbearance may NOT be your best option. The lump sum payment may be due at the end of the period.
Impacted by Coronavirus? We Are Here to Help.
If you have been impacted financially by the Coronavirus, you may qualify for monthly mortgage payment assistance options, such as a forbearance plan.
During this exceptionally challenging time, we are here to help you navigate the various mortgage assistance programs that may be available to help you. However, we must adhere to federal, state, investor and local municipality written guidance on mortgage assistance options. Our team is diligently monitoring the situation daily for any changes that would impact the assistance we may be permitted to offer.
Please know that we are aware of the new Coronavirus Stimulus Bill (CARES Act) the President signed into law on Friday, March 27th, 2020. We are reviewing the requirements under the law and will begin offering any assistance programs as soon as possible.
A forbearance is a temporary suspension of your monthly mortgage payment. During the forbearance period, your payments are suspended for a set period of time. However, if you are able to make partial payments, it will reduce the amount due at the end of the forbearance period.
Important note: At the end of the forbearance period, all suspended payments will be become due.
Additional assistance options may also be available to you:
Repayment Plan: The total amount of suspended payments is spread out over future payments until the full amount is repaid.
Payment Deferral: Deferment of suspended or past due principal and interest payments as a non-interest bearing balance, due and payable at maturity of the mortgage loan, or earlier upon the sale or transfer of the property, refinance of the mortgage loan or payoff of the unpaid principal balance and any unpaid fees.
Loan Modification: Permanently change the terms of your mortgage to bring it current.
Examples of How a Forbearance Works
1. John's monthly mortgage payment is $1,000 and is due on March 1st. He chooses a forbearance in March. As a result, the forbearance period will run from March through May. During this time his monthly mortgage payments are suspended. At the end of the forbearance period, John will owe a total of $4,000 on June 1st = $3,000 for the March through May payments, plus his June payment of $1,000.
2. John's monthly mortgage payment is $1,000 and is due April 1st. He chooses a forbearance in March. As a result, the forbearance period will run from April through June. During this time his monthly mortgage payments are suspended. At the end of the forbearance period, John will owe a total of $4,000 on July 1st = $3,000 for the April through June payments, plus his July payment of $1,000.
Also, negative credit reporting and late charges will not occur during the duration of the forbearance period. Toward the end of the forbearance period, we will work with you to determine eligibility for additional options should you need them.
Options could include the following but there may be additional eligibility requirements and documentation required for you to provide prior to approval.
1. Extension of the Forbearance Plan period
2 .Repayment Plan
3. Payment Deferral:There may be additional eligibility requirements and documentation required.
4. Loan Modification. There may be additional eligibility requirements and documentation required.
