(AmericanProsperity.com) – Unemployment has surged to all-time highs as many Americans are fighting to keep their heads above water in the wake of the COVID-19 pandemic. For the week ending April 5, requests for mortgage loan forbearances jumped 78% over the previous week, according to the Mortgage Bankers Association. The number of borrowers now in forbearance exceeds two million.
— Mortgage Bankers Association (@MBAMortgage) April 13, 2020
The CARES Act allows mortgage borrowers with loans backed by Fannie Mae, Freddie Mac, and Ginnie Mae to miss anywhere from 3 to 12 months of payments.
If you need one, here’s what you should know when asking for a forbearance.
The default repayment plan requires past due amounts to be paid in full as a lump sum at the end of the forbearance period. If you must get a forbearance, try to negotiate a payment plan when payments resume or ask for a loan modification to tack it on the end of the mortgage. If you need a forbearance, contact your mortgage lender. Explain your situation and ask for options.
The more proactive you are, the better off you’ll be. Don’t wait until you’ve missed a payment to reach out to your mortgage lender. Late payments will still show up on your credit report. If you work out a forbearance before becoming late on your payments, you’ll avoid issues with your credit reports.
~Here’s to Your Prosperity!
Copyright 2020, AmericanProsperity.com