How do you cancel mortgage forbearance? What if my mortgage loan isn’t federally backed? What if I applied for forbearance and it’s now affecting my co-signers credit score, what should you do? In this video, I dive into those questions and help provide some guidance.
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Do you have real estate or mortgage forbearance questions you want me to answer? If so, please reach out or comment below.
How do you cancel mortgage forbearance?
When the CARES Act was initially introduced and they mentioned the forbearance plan, a lot of homeowners reached out and took the forbearance option from their lender without ever considering how it may affect their ability to refinance or purchase a new home. Because of that, a lot of people now want to cancel their forbearance so they can refinance if interest rates move lower but is it that easy?
Even if you are making your mortgage payments but originally accepted forbearance then chances are you are still in forbearance which means your lender or servicer is reporting to the credit bureaus that you are in a forbearance plan.
Step 1 – you need to call your lender and cancel your forbearance plan if you no longer want or need to be in it.
Step 2 – Figure out your payment plan with your lender /servicer on how you plan to make up the missed payments
Step 3 – If you decide on something other than the lump sum payment option, find out how they are going to be reporting it to the credit bureaus as there could be a chance that it will show that you are in forbearance until all payments are made current.
What are your forbearance options if your loan isn’t federally backed?
Unfortunately, if your loan isn’t federally backed by Fannie Mae, Freddie Mae, FHA or VA then your options are somewhat limited to your servicer. There are no set in stone guidelines like the federally backed lenders that require them to give you certain forbearance plans or even repayment plans. They are not required to give you the same options of the federally backed lenders as part of the CARES Act. I’m hearing most non federally backed lenders are just offering a 3-6 month forbearance period with a lump sum payment due at the end of the forbearance term.
If your loan isn’t federally backed and you still need mortgage assistance, make sure you are staying in touch with your lender and explaining your situation as that is your best option to get additional assistance. If you aren’t getting answers, keep calling and speaking to different people.
If you have additional questions about mortgage forbearance or just real estate in general, please reach out to me directly or comment below.
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