What is Forbearance with my current mortgage?
Forbearance is when you have possibly been late on payments and the lender agrees to not foreclose during the forbearance agreement.
Do not assume you can skip a payment. If you can make a payment - Try To Do So!
Forbearance allows you to pause your mortgage payments temporarily.
It does not necessarily allow you to pause the interest that is accruing.
You will have to make payments at a later date. It could be requested in one lump sum. Try to work with your lender to create a payment plan.
What is deferment payments for your mortgage?
Deferred payments allows you to also pause your mortgage payments temporarily.
Deferred payments allows you to take a small amount of time such as 3-6 months and defer those payments until the end of the loan period
For example; if you defer 3 months with a 30 year mortgage you would now have a 30 year and 3 month mortgage loan.
If you have a government backed or federally backed loan such as Fannie Mae or Freddie Mac – FHA has implemented the National Emergency Partial Claim as an option for loan servicers.
Mortgage services must extend a deferred or reduced payment options for up to 6 months and they must provide an additional 6 months of forbearance payments if requested by the borrower.
The national emergency forbearance is authorizing servicers to advance funds on behalf of homeowners. The partial claim will defer the repayment of those advances through and interest free subordinate mortgage that the borrow does not have to pay off until their first mortgage is paid.
Either forbearance or deferment – loan servicers are to extend flexibility under the Fair Reporting Act due to Covid 19 - to not report negative or delinquent credit reporting if consumers choose to defer or put their loans in forbearance.
TIPS:
Make sure you get everything in writing!
Keep all your written documents in hand!
Pay attention to your monthly mortgage statement – no errors!
Keep an eye on your credit – check your credit report through credit agencies, Equifax, Transunion & Experian or start a credit karma account.
Once your income has restored, inform your loan servicer – You always want to try to owe less down the road!
Be aware of Scams!
What questions should I ask my loan servicer or financial institution?
1. What options are available to help you temporarily reduce or suspend your mortgage payment?
2. Are there forbearance, loan modifications or other options available?
3. Can you waive my late fee's?
LOAN SERVICER will most likely ask you -
Why are you unable to make your payment?
Is this a temporary or permanent problem?
Details on your income, expenses and assets – like how much cash you have in bank accounts?
Are you a service member part of the military on PCS orders?
How do I find out who services my loan?
Look it up on line - both Fannie Mae & Freddie Mac have look up tools to see if they service your mortgage. Simply go to their website.
Search for your loan servicer through the Mortgage Electronic Registration Systems MERS website.
Send a written request to your mortgage servicer. They are obligated to provide you with the name, address and phone number of the owner of your loan. This information can be found on your mortgage bill.
Call your loan servicer. - CAUTION: This may take some time and patience!
Please feel free to contact me via email with any additional questions or concerns.
My email is cherylcapehomes@gmail.com
From my family to yours, I am wishing you all my best. Stay strong! We got this! Always try to keep a smile on your face!
