sgip
Well-known member
Plenty of news noise about mortgage forbearance. Some words of advice here:
1) Never skip a payment, even if advised to do so. Make partial payments if possible.
2) If advised to do so, DON'T until you get the details in writing.
3) Ask your servicer "If I have a payment forbearance, what happens later to that amount I did not pay?"
During the last crisis there was very little written guidance on what the ramifications would be if you went into a loan mod or some other work out. Many people were harmed more by the cure than they were by the symptoms. Don't put yourself in that position and always demand something in writing before acting.
A major funding source for Mortgage Bankers sent out letters to their closed loan customers. Here is the key paragraph in this two page letter:
"What happens after a forbearance? At the end of your forbearance period, all payments not made during the forbearance period will have to be paid back. We will be in contact with you to review options fo repayment, such as:
A) Pay it as a lump sum.
B) Start a repayment plan - Over a set number of months, an extra amount will be added to your regular mortgage payment to cover the amount you owe from the forbearance.
C) Loan Modification - If you are unable to pay a lump sum or through a repayment plan, we will work with you on a loan modification"
This is the first letter I've seen so far that goes into details about the exit plan from forbearance. I'm sure every company will be different, but unless you get the details in writing, you may be setting things up for pain later on if you take a forbearance. If anyone had a loan mod in 2008-2010, then tried to get a new loan in 2014-2017, you know what I'm talking about.
If anyone else has gotten any written instructions on these plans, please share them here.
My ,02c
1) Never skip a payment, even if advised to do so. Make partial payments if possible.
2) If advised to do so, DON'T until you get the details in writing.
3) Ask your servicer "If I have a payment forbearance, what happens later to that amount I did not pay?"
During the last crisis there was very little written guidance on what the ramifications would be if you went into a loan mod or some other work out. Many people were harmed more by the cure than they were by the symptoms. Don't put yourself in that position and always demand something in writing before acting.
A major funding source for Mortgage Bankers sent out letters to their closed loan customers. Here is the key paragraph in this two page letter:
"What happens after a forbearance? At the end of your forbearance period, all payments not made during the forbearance period will have to be paid back. We will be in contact with you to review options fo repayment, such as:
A) Pay it as a lump sum.
B) Start a repayment plan - Over a set number of months, an extra amount will be added to your regular mortgage payment to cover the amount you owe from the forbearance.
C) Loan Modification - If you are unable to pay a lump sum or through a repayment plan, we will work with you on a loan modification"
This is the first letter I've seen so far that goes into details about the exit plan from forbearance. I'm sure every company will be different, but unless you get the details in writing, you may be setting things up for pain later on if you take a forbearance. If anyone had a loan mod in 2008-2010, then tried to get a new loan in 2014-2017, you know what I'm talking about.
If anyone else has gotten any written instructions on these plans, please share them here.
My ,02c