PRACTICAL & AGGRESSIVE REPRESENTATION

PRACTICAL & AGGRESSIVE REPRESENTATION

PRACTICAL & AGGRESSIVE REPRESENTATIONPRACTICAL & AGGRESSIVE REPRESENTATION

COVID-19 - HOW DOES IT EFFECT YOUR CURRENT MORTGAGE?

 

The $2.2 trillion CARES Act stimulus package requires servicers to provide forbearance — a temporary postponement of payments — to any homeowner with a federally-backed mortgage. Americans with other mortgages may  also be able to receive forbearance at their servicers’ discretion.  To be clear, mortgage borrowers will still need to pay off their loan eventually if they receive forbearance.


But Forbearance is not forgiveness. You still owe the money that  you were paying, it’s just that there’s a temporary pause on making your  monthly payments.’                

Under a Forbearance agreement, a borrower can pause payments  entirely or make reduced payments on their mortgage. Homeowners with  federally-backed mortgages are eligible for up to 180 days of  Forbearance initially under the CARES Act. At that point, if they’re  still facing financial difficulty, they can request an extension of up  to another 180 days of forbearance.


The provisions in the  stimulus package stipulate that during the forbearance period, mortgage  servicers cannot make negative reports about the borrower in question to  credit bureaus, including the three main ones, Experian, Equifax, and TransUnion . Borrowers also will not owe any late fees or penalties if they are granted forbearance.


But the real unknown is what to do after the Forebearance period ends and you suddenly owe a large lump sum? How will your current mortgage company react? What other programs will be available thru your current mortgage lender? Will they even inform you? Options with your current lender will exist and having the right professional counsel to advise and/or negotiate is where our legal representation can pay great savings in the form of payment plans and potential reduced interest rates for years to come.  

image230