Forbearance – Important Information – What IS it?

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

https://thenationalrealestatepost.com/urgent-call-to-action-on-amending-cares-act

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:

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!

b

What is ahead for us?

We are all at a fork in our path!

As Yogi Bera so astutely said: “When you come to a fork in the road – Take it!

This is the first choice . . . the choice to continue FORWARD.

Of course, there are 2 other options:

STOP right HERE and freeze with analysis paralysis (FEAR), or go back from whence you came.

Considering our current circumstances, going back to what was before is an impossibility.

Come to think of it, staying where we are now isn’t possible either because our resources will soon be exhausted.

WELL?

Like it or not, forward it shall be . . . and you cannot take both paths.

Robert Frost has something to say about this:

The Road Not Taken 

Two roads diverged in a yellow wood,
And sorry I could not travel both
And be one traveler, long I stood
And looked down one as far as I could
To where it bent in the undergrowth;

Then took the other, as just as fair,
And having perhaps the better claim,
Because it was grassy and wanted wear;
Though as for that the passing there
Had worn them really about the same,

And both that morning equally lay
In leaves no step had trodden black.
Oh, I kept the first for another day!
Yet knowing how way leads on to way,
I doubted if I should ever come back.

I shall be telling this with a sigh
Somewhere ages and ages hence:
Two roads diverged in a wood, and I—
I took the one less traveled by,
And that has made all the difference.

Choosing the more traveled road feels safer for most people (80%). After all, if most people go that way, then there will likely be more potential for traveling WITH other folks – safety in numbers – striking up conversations which lead to conversations and camaraderie, and less uncertainty about getting “there”. There will be Leaders and followers and community which all commutes to a form of imputed knowledge. This is akin to a perspective of living a life of predestiny . . . your future is constrained by circumstances and other people?

Are you a believer that you can achieve anything you can imagine? Oh! YOU are are one of those unabashedly intrepid explorers who thrive on uncertainty and adventure. For you, SURPRISE is welcome because it reminds you that you’re ALIVE! You are less attached to the outcomes, but this doesn’t mean that you are aimless . . . In fact, you are amongst the population with very clear VISION. You KNOW within you what it’ll look like when you arrive . . . and everyone but you will think you got lucky and became an overnight success as you stumble out of the bush and reveal your creation. You’ll smile and inwardly celebrate the fruits of your focused intentions and all of the attention you paid with your blood, sweat, and tears.

Each of these roads is possible, and only you have the power to choose which one you will travel.

Ah the quandary!

Which will it be?

How will you know if you’re taking the “right” road?

Before choosing, allow yourself some time for due diligence.

This is metaphorically sticking a toe in the water to see if the temperature is tolerable.

Take some time for reflection.

Can you paint a clear picture of where you want to go?

Having that image in your mind, begin to tackle the “HOW”

Begin with a period of reconnoiter (MEANING: To explore or scout an area for gathering information.) Seek wisdom from other people who may have had experience with travels similar to the one you are undertaking (The older – The Better).

What tools and equipment might you need?

Who are the people you will need to travel with you?

How will develop your “way” in terms of documenting what works and what doesn’t and building models and systems to leverage your resources (Time – Energy – Money – People)?

PROCEED and don’t look back (remove your review mirror).

This post was (in part) inspired by today’s message from “The Universe”

“You’re not supposed to be able to see it with your eyes first. It wouldn’t be called “manifesting” if you could.
See it with your mind first. 
That’s what it’s there for, sort of
–   The Universe”

http://tut.com

PS: Yesterday, I had a revelation unfold right before my very eyes. It’s a scary and exciting possibility which, when realized will be a veritable game changer for Pareto Realty, the Vital Few Members of Pareto Realty and myself personally.

We are ALL looking forward to hear YOUR story of your journey down the road YOU choose.

Beware Sheeple Tendencies

Joining the flock seems to be safe in unusual environs.

There’s a tendency to relegate individuality to blending into the midst of the mass of sheeple . . . hoping not to be noticed and singled out.

Dare you to be different than the others?

What if you’re WRONG?

What will other people think?

What will “they” SAY?

Does it matter?

My observation is that people who take the stance that “It’s none of my business what other people think of me” get talked about more than others.

These folks who PROUDLY STAND OUT from the flock endure insufferable name calling – “traitors” – “Renegades” – “Rebels” – “Outliers”

These are the intrepid explorers who strike out on their own to find the GOLD in the vast wild wild West.

As the economy begins to spool up after this massive COVID-19 disruption, we are all facing a blank slate. We do not know what “works” anymore.

Being that person others talk about is a good thing – even sexy because it’s training wheels for climbing from the depths of depression to acceptance.

Thank you to ALL of the Pioneers forging the way ahead for all of us.

For sure, we’ve all participated in our own, personal version of the 5 stages of grief – denialangerbargainingdepression and acceptance and each of us may be at different stages thereby presenting this wonderful cacophony commonly known as “Mass confusion” which indubitably converts to “MASS HYSTERIA” which controls . . . and prohibits any semblance of reason.

Yesterday, I facilitated 2 awesome discussions with over 30 Principal Brokers.
The general consensus was that we Realtors did not “close for business” so talking about “re-opening” doesn’t make much sense, BUT . . . 
These discussions revealed some of the things that will likely change in a lot of companies. I listen to all of them and then run it all through the filter of “Is this in alignment with the culture of Pareto Realty’s Vital Few?”

Almost ALL business owners are on the band-wagon of reducing or eliminating “Bricks and Mortar Office space”. There certainly are some firms (EXP) which do not have “real offices”, and they say that this is great for their agents “Because most of the agents don’t work from the office anyway” . . . I’m not (yet) sold on this being the best solution for Pareto Realty. I guess time will tell . . . as we all climb out of this COVID-19 thing, we will all be reevaluating pretty much everything we are doing. I think it’s crucial for all of us to ask ourselves and others LOTS of question and separate the sheeple from the people.

  • How important is ___________ to you and your business?
  • What are the odds that you will return to doing _________ once you emerge from quarantine?
  • Do you think that having ________ (or not) will be a “differentiator” from competitorss? Why?
  • Assuming we keep _________, are there any tweaks we need to do? 

Other HOT topics
– Virtual Showings are turning out to be very effective – MANY Appraiser issues – Value, condition, etc- Underwriting guidelines are changing daily with “verifications” of income and jobs being done often on the day of closing.
and finally . . . I’d be remiss if I failed to mention that my desire to grow Pareto Realty this year is high.

I am SO excited about possibilities post-COVID-19, I facilitate a weekly discussion and would love to hear and see YOU!

Here’s your invitation!

Hi there,

You are invited to a Zoom meeting.

Realtors conspiring to create an AMAZING Post-COVID-19 Real Estate Market . . . Every Monday at 11AM CDT
When: May 25, 2020 11:00 AM Central Time (US and Canada)

Register in advance for this meeting:
https://us02web.zoom.us/meeting/register/tJUrdOytqzwoH9dySo4PfjroMfCtPA7lnw1e

After registering, you will receive a confirmation email containing information about joining the meeting.

The Gestation of Statistics

Every day, the world opens a tad bigger for all of us as we venture beyond the confines of our abodes.

It seems that every conversation reveals more freedom, and there’s more “pep in the steps” for those who’ve just had their first post-quarantine restaurant dine in experience (I had mine last Thursday).

The “experts” continue to be very skeptical about the rate at which “re-opening of the economy” and are cautioning all of us to be less eager. The fear is that we will get sloppy with our social distancing, and there’ll be a resultant flare-up of new cases of COVID-19 infections.

The New York Times published an article this morning reminding us to remember the timeline of the “average” case of COVID-19. If there is to be a spike in affected people, it will not show up in the statistics until 3-6 weeks from now. We are kids being freed from our “grounding” . . . and the experts may have just cause for concern, but the barn door is open now, so . . .

We Realtors “get this” lag from action to ramification because most real estate transactions happen to have a similar gestation period. The work we are doing now will bear fruit (commissions paid) in 30 to 90 days or longer. The monthly statistics only reflect what happened in the past.

So . . . enjoy the extra freedom with appropriate caution and practice”safe protocol”, and I think we’ll heal progressively until we settle into whatever this “new normal” will be.

Be Well!

b

Putting a Band-aid on a Compound Fracture

The lead story in The New York Times “Friday Briefing” REALLY got my attention this morning.

There is NOTHING partisan about this . . . It seems North American Leadership has failed us.

Both political parties have mis-executed egregiously when it comes to taking care of our Labor Force.

. . . and it seems that “more of the same” is in the works . . . as we all witness our politicians doing the same things expecting different results . . . Insanity personified!

The next email in my queue this morning was the daily post of The National Real Estate Post

National Real Estate Post

OUCH!

The words coming from the National Association of Realtors are many . . .

All hat . . . no cattle!

Obfuscation run amok as Frank and Brian so eloquently point out that NAR’s address to their 1.3 million membership is shallow at best – No meat on the bones – Too many adjectives and not enough verbs absent specificity as what they are DOING for their members. Their “assurances” to Realtors and the general public are aspirational with no “Forward Marching orders” whatsoever.

Rant over!

I know that we ALL will rely on the resources that our membership have already.

Just as we do when facing devastating destruction from a Natural disaster, we will self-organize around the issues and opportunities for which we have passion and each and every one of us will contribute to finding our way through this morass . . .

One of the mantras of Combat Engineers makes it clear:

LEAD – FOLLOW – or get out of the way.

OK Leaders!

which of those paths will YOU take?