Homeowners Are Latest Virus Victims

Homeowners Are Latest Virus Victims

(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.

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!

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