Caution on Getting Forbearance On Your Mortgage
If you are facing a hardship on your mortgage payments, getting a Forbearance may be an option you may be considering. My first suggestion is to seek legal or professional advice from a licensed lender or an attorney. Be cautious on getting forbearance on your mortgage and fully understand the terms should you agree with the lender to execute a forbearance.
Forbearance is basically a temporary delay in making your mortgage payments.
Here are 3 things you may want to consider and understand prior to executing a Forbearance with your mortgage service provider.
1. Forbearance is not a Forgiveness, it is only temporary delay or hold on a set amount of payments, usually from 2-12 months, pending ones hardship.
2. If you did manage to get a Forbearance on your payments then they become due immediately at end of the forbearance. As an example, if you had four months forbearance period on your payments, then on the 5th month, all 5 months payments are due.
3. If you are considering a refinance after a forbearance, it may significantly affect if you can or cannot do a refinance or it may affect the interest rates and terms and conditions of the new loan.
Again, please seek legal advice.
Here is a site that may have more information, tips and resources on Mortgage Forbearance:
Consumer Protection Financial Protection Bureau:
If I can help with any resources or any questions, please contact me.
Mahesh Mike Patel
First Team Real Estate