In this video, we'll explain how the mortgage forbearance process really works, to help you make a decision if it is right for you.
In this video, we'll explain how the mortgage forbearance process really works, to help you make a decision if it is right for you.
Let's look at Roger's situation to get a better understanding. Roger was recently laid off due to his company closing down because of the COVID-19 pandemic.
Let's look at Roger's situation to get a better understanding. Roger was recently laid off due to his company closing down because of the COVID-19 pandemic.
Roger is worried about paying his April 1st mortgage payment. He has heard on the news that he doesn't have to pay and can get a forbearance.
Roger is worried about paying his April 1st mortgage payment. He has heard on the news that he doesn't have to pay and can get a forbearance.
But how does that work?
But how does that work?
Roger must contact his servicer, who collects his monthly mortgage. Only they can grant a forbearance, and Roger must submit an application.
Roger must contact his servicer, who collects his monthly mortgage. Only they can grant a forbearance, and Roger must submit an application.
Depending on what kind of mortgage Roger originally qualified for, as well as the servicer's policies and guidelines, Roger's request may or may not be granted.
Depending on what kind of mortgage Roger originally qualified for, as well as the servicer's policies and guidelines, Roger's request may or may not be granted.
If granted, Roger's forbearance means he doesn't have to make a payment for 3 months (or whatever number of payments is granted by the servicer).
If granted, Roger's forbearance means he doesn't have to make a payment for 3 months (or whatever number of payments is granted by the servicer).
But a forbearance is not a deferment. This is one of the most misunderstood parts of the process.
But a forbearance is not a deferment. This is one of the most misunderstood parts of the process.
At the end of the 3 months, Roger must pay that month's payment, plus what is owed. This is usually due in one lump sum, or possibly extra payments over time.
At the end of the 3 months, Roger must pay that month's payment, plus what is owed. This is usually due in one lump sum, or possibly extra payments over time.
Although you may be able to get a deferment from your servicer, it is important to realize that most are not able to do that due to how mortgages are sold.
Although you may be able to get a deferment from your servicer, it is important to realize that most are not able to do that due to how mortgages are sold.
I hope this video helped clear things up a bit. Although I can't handle your forbearance application, I may have other solutions for you.
I hope this video helped clear things up a bit. Although I can't handle your forbearance application, I may have other solutions for you.
Please contact me anytime to discuss your situation. I'd be glad to help in any way I can.
Please contact me anytime to discuss your situation. I'd be glad to help in any way I can.