How does deferring your missed forbearance payments work? Will you still be in forbearance until those payments are made current? Did you see my other forbearance video on deferring your missed payments and still have questions about the deferment option? In this video, Scott and I dive into a lot more detail about the new deferment option that Fannie and Freddie are providing and discuss a valuable resource in the https://forbearancereport.com
New videos 3-5 times per week on Real Estate, Mortgage, Home Buyer Tips and Home Seller Tips – Subscribe for More Real Estate Tips and Real Estate Information – https://goo.gl/NZB1S6
The ForbearanceReport (https://forbearancereport.com/) is all about helping homeowners protect themselves by understanding forbearance, deferment & other mortgage payment relief options available to you during the COVID-19 Coronavirus crisis.
If you want to contact Scott directly, you can reach him at email@example.com.
What is the difference between forbearance and deferment?
“Loan forbearance and loan deferment are two different options that homeowners who are facing hardship can consider, but there are significant differences between the two. As outlined above, during a mortgage loan forbearance, payments are due in full when the forbearance period ends unless another payment option is agreed to with your loan servicer. Typically, a forbearance period will not exceed 12 months at a time and interest will continue to accrue during the temporary forbearance period.
A mortgage loan deferment is the delaying of payments for a defined period of time due to extenuating circumstances and is often used as a final step to avoid foreclosure. Deferment options are not available from all servicers, which can be more difficult to qualify for and may require more detailed documentation during the deferment evaluation process. During a loan deferment, a borrower delays their mortgage payments, including principal and interest, to a later date. The loan balance will be due on either the mortgage maturity date, the pay-off date or upon the sale of the property – whichever option comes first.
The length of the loan term and the payment schedule will remain the same, but the deferment period may vary based on deferment type. Each loan servicer may have multiple deferment types and since these vary from servicer to servicer, homeowners will need to contact their specific servicer to review the options available to them. Additionally, a deferment period can last up to a few years and during the deferment period, interest on the mortgage loan will not accrue. Similar to forbearance, servicers may not approve all deferment requests and they can be more difficult to qualify for.
Besides forbearance and deferment, servicers may also provide other options for homeowners experiencing hardship, such as loan modifications or repayment plans. Those options will vary from lender to lender and case by case and may require additional financial documentation from your bank or other sources to prove financial hardship in order to qualify.”
That explanation came directly from https://forbearancereport.com/.
If you have additional questions about forbearance or deferment, please comment below or contact me directly.
Thank you for watching.
Connect with me: