Please read carefully
Mortgage Borrowers affected by Covid 19
Forbearance/Deferment of Mortgage Payments:
- Typically allows for borrowers to lower or skip payments for a period of time due to a financial hardship.
- Legislation in the works for plan to:
- Provide borrowers to obtain a 90 Day break from their mortgage payments (however, this could be extended to a full year, in some cases)
- Provide protection to borrowers that would eliminate:
- No negative reporting for missed payments to the credit repositories
- No late fees
- Elimination of calls to borrowers regarding missed payments from servicers
- Missed payments would be made at the end of loan, extending the life of the loan.
- Currently servicers/lenders are handing deferment/forbearance requests differently
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- Some may be requiring that the missed payments be paid back in 1 lump sum when the deferment period is over.
- Some lenders are also providing Modifications which will spread missed payments out several months and add missed payments to the end of the loan
- Recommendations to borrowers:
- CONTACT LENDER OR SERVICER IMMEDIATELY AS COMMUNICATION IS KEY!!!
- Find out what their policy is regarding Forbearance
- This information may be available on their website
- This may be an arduous process right now due to the volume of calls they are getting but it is essential!
- You to make sure you read and understand any documentation you receive on the options you have been given!!!!
- CONTACT LENDER OR SERVICER IMMEDIATELY AS COMMUNICATION IS KEY!!!
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- Keep any documentation obtained in case it may be required when applying for future mortgage loans.
- To obtain a forbearance or modification, the agencies will continue to require the following information when determining if a borrower is eligible for this relief:
- Borrower must have been current or less than 31 days delinquent (must not have missed more than 1 monthly payment) at the time of the Disaster. (March 13, 2020)
- Document the hardship:
- Loss of income
- Reduction in income
Vikki McDaniel Mortgage Loan Originator vmcdaniel@mybploan.com |