Have you lost income and having trouble making your mortgage payment?Are you wondering if mortgage forbearance is the right option for you? In this video, I discuss the 5 things you should know about forbearance from how to qualify to how it could affect you if you are looking to refinance or purchase in the near future.
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5 things you should know about forbearance
1. Mortgage forbearance is available to anyone with a federally backed mortgage through FHA, VA, Fannie Mae, Freddie Mac or Ginnie Mae if you have been directly affected by covid. All you need to do is call your lender/servicer and request that your loan be put into forbearance.
2. Any missed payments due to forbearance have to be repaid. These payments don’t get forgiven or just disappear. With that said, you should be provided with several different payment options including paying a lump sum payment, a repayment plan, a loan modification or a deferment (putting all missed payments on the end of your loan)
3. If you get to the end of your forbearance period, you can extend it for a period up to 12 months. If you are reaching the end of your initial forbearance period and you need additional time because you are still being affected then you just need to call your lender and ask for additional time.
4. Accepting forbearance will likely affect your ability to refinance or purchase another home for at least 12 months following your forbearance period. In addition, it could affect your credit score as well.
5. Your bank can’t just foreclose on you because you come to the end of your forbearance period and you can’t start making your monthly payments again. They have to provide you with repayment options like we mentioned above.
If you have additional questions about forbearance or deferment, please comment below or contact me directly.
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