There’s a LOT of misinformation about forbearance circulating through the internet, media, word of mouth, and even lenders who either are ignorant or uncaring.
If you are in a position of needing forbearance – You’re unable to pay your mortgage or other debt payments – Do this INTENTIONALLY. Do the work of talking directly with the company which services your loan and FULLY understand the terms of the agreement.
The most frightening thing about this is that there are many people are already “in forbearance” and don’t know. They haven’t a clue of the terms of the agreement.
Yep! It’s possible that even YOU have clicked a link and inadvertently requested for your loan to go into forbearance without knowing ANY of the terms for repayment (Catching up on unpaid monthly payments)
There’s more about this in this brief video from The National Real Estate Post
Just after watching the video, the next email I received is copied below from Renasant Mortgage Lending with the title “We’re here to help you understand your options.“
“In these challenging times, we’re here to answer your questions.
These days, your house is more than your home. It’s your home base, your safe spot, your office, your kids’ classroom, your entertainment space. Now more than ever, it’s the center of your life. If your situation has changed or if you’re out of work right now due to the Coronavirus Pandemic, the last thing you want to think about is not having enough money to pay for your home. Thankfully, you have options, but they can be confusing. That’s why we’re here: to help you understand your options right now-and figure out which option is best for you later, based upon your individual financial situation.
What help can I get now?
Under the CARES Act, you are eligible for a forbearance if you have a federally backed mortgage loan. It’s the first option if you are experiencing a hardship due to the Coronavirus and meant to help you before you fall behind. As a borrower, you may request a forbearance on your federally backed mortgage.
- A forbearance is a temporary suspension of your monthly mortgage payments.
- It does not mean your payments are forgiven.
- It’s important for you to know that once the forbearance period has ended, the suspended portion is due—but you will not have to pay it back all at once. You have options.
- The CARES ACT allows a borrower to have an initial forbearance period of 180 days regardless of their delinquency status. After that, if you’re still financially impacted by the Coronavirus Pandemic, you can extend up to an additional 180 days.
It’s not always easy to see whether your mortgage loan is federally backed. Or, in other words, who owns your mortgage loan. Many mortgage loans are sold and the servicer you pay every month may not own your mortgage.
There are some online tools you can use to look up who owns your mortgage:
- Fannie Mae: https://www.knowyouroptions.com/loanlookup
- Freddie Mac:https://ww3.freddiemac.com/loanlookup/
Loans insured or guaranteed by FHA, VA, or the USDA are also federally backed loans.
When might deferral be an option for me?
A deferral program was just announced which will go into effect on July 1, 2020 for Fannie Mae and Freddie Mac federally backed loans. It is only available after your financial hardship has ended or the forbearance periods are exhausted. A deferral enables you to avoid having to pay your suspended mortgage payments all at once typically by adding a non-interest bearing loan at the end of your mortgage, but repayable if you sell your home. Depending on your individual financial situation, we will work with you on available options. Other options available also depending upon your financial situation and the type of loan you have include:
- A reinstatement, which means paying what you owe on missed payments if you can afford it.
- A repayment plan, which means spreading what you owe on missed payments over a short period of time.
- A loan modification, which modifies the terms of your loan permanently in order to change your payment amount.
How will visiting www.renasantmortgageservicing.com help if I have questions during this time?
The website is your key resource for information, guidance, and tools. It’s also the place where you may request a forbearance if you have a hardship due to Coronavirus. To get started, just visit www.renasantmortgageservicing.com, complete and submit the request form.
If you’re already on a forbearance plan, there is nothing more to do right now. We will be in touch with you to discuss your options before your forbearance ends.
In the meantime, please stay safe and stay well.”
I couldn’t have said it better.
Be careful out there!