An Update on Mortgage Forbearance
Mark Spain Real Estate provides you with top real estate news so you can stay in the know and make well informed decisions. Today, we have gathered more information to update you on mortgage forbearance. Stay informed with the latest real estate trends and news by visiting our blog!
A Recap: What is a Mortgage Forbearance?
A forbearance is when a mortgage servicer allows an existing borrower to temporarily suspend mortgage payments for a period of time due to a financial hardship.
Homeowners are able to temporarily pause or reduce payments for a limited time. However, a forbearance doesn’t waive or dismiss the amount a homeowner owes in any way. At the end of the period, borrowers must pay the missed payments.
New Forbearance Deferral Option
A new repayment option is now available! The COVID-19 Payment Deferral Solution allows borrowers to shift up to 12 missed payments to the end of their loan.
This new deferral option is best suited for borrowers who took out a forbearance due to the coronavirus. It is available to borrowers who have regained their ability to pay their mortgage on time. This allows borrowers to pay what they can, while any missed payments are deferred to the end of their loan. It simplifies the types of forbearance options for homeowners, while providing another tool for mortgage officers.
Mortgage servicer providers are offering this program starting July 1, 2020. This new payment option is another great tool to help homeowners during this unprecedented time.
Remember, borrowers who take out a forbearance should still pay their mortgage if they can. These missed payments will not go anywhere and will ultimately have to be repaid at the end. Also, there are still other forbearance repayment options out there. For more information on forbearance, click here.
If a forbearance period feels like the right option for you during this time, don’t hesitate to contact your mortgage service provider for assistance! Mark Spain Real Estate is here to help and guide you through the real estate process every step of the way.