04/01/2020
This is some first level intel on what is developing in the mortgage industry surrounding payments and hardships due to COVID-19. Watch this for some good information. This explains some of the concepts, financial warnings and expresses WHICH updates, regarding mortgages, to look for.
PLEASE NOTE: 1) There is a BIG difference in these 2 terms, and forbearance USUALLY comes with a big balloon payment due immediately after your forbearance. For example, you have a $1000/month mortgage. you get forbearance for 6 months. month 7 your FIRST payment back has to catch you up, so your payment is $7000!! then you return to your normal amount. (if you have a $2K mortgage, then you owe $14000 in 6 months. and so on. 2) Deferral returns you to your normal payment starting your first payment back and the deferred payments are added to the END of the loan (often in a balloon or just extra regular payments, so your amount remains unchanged) 3) And this is the most crucial point to understand ... The Government has NOT set regulations with this yet!! So things will change in the very near future. So by your next months payment due, there maybe legislation defining all of this.
That said, BE CAREFUL. A lot of people are in desperate situations. It's easy to just sign for ANY relief that you can, and we all understand that. The key is to keep as cool and savvy as possible, and not sign ANY agreements unless the terms are clear to you. Ask questions! Don't be ashamed. The entire planet is dealing with this on some level. You aren't on an island so don't put yourself on one accidentally. It's hard, if not impossible, to be completely informed right now. So use best judgement, ask questions, be safe (it's ok to be a little too safe!) and God bless.
Today we speak with NAMB President Rocke Andrews and Homebridge Financial Services CEO Peter Norden about