What is mortgage forbearance?
Have you received an offer to skip some of your mortgage payments due to hardship caused by COVID-19? If so, you NEED to watch this video... You may have gotten a letter in the mail with an offer to skip three or more of your mortgage payments. While this may sound tempting, make sure you read the fine print.
Forbearance or Deferment?
Depending on the circumstances and loan type, customers can request to defer their payments, and the payments would then be added to the end of their loan. In other cases, you may be approved to defer your payment but will be required to make a balloon payment just a few short months later. For example, if you skip 4 of your mortgage payments, in the 5th month, the bank would expect you to pay the prior 4 months in full, all at once.
Many are not aware of this fact and may not be in the position to make this large of a payout in the foreseeable future.
How do you know which hardship offer you can use?
Be sure you contact your lender to get all the facts before taking advantage of any relief offers. If you or someone you know is facing financial hardship, you may have additional options outside of deferring your payments.
Want to talk about all your options?
I am taking virtual appointments to discuss all your options confidentially and safely. I am proud to be your real estate partner and will continue to keep you updated on the latest.