Fannie Mae and Freddie Mac recently clarified that the lump sum repayment at the end of the loan forbearance plan “is an option for repaying missed payments”. The two government-sponsored enterprises (GSEs) also explained the other options for repaying the missed payments amid growing confusion among millions of homeowners who have sought forbearance after being affected by the Coronavirus Disease of 2019 (COVID-19) pandemic.
Quarantine life with kids at home going on SEVEN weeks, oil prices in the red, rising unemployment, the declining economy, forbearance payback terror, the corona virus crossing the one million cases mark, and the country is re-opening. Wow, that is more drama than all of Bravo’s Housewives…every city and all seasons combined.
People are often devastated when they suddenly lose their jobs. As a result of the ongoing coronavirus disease of 2019 (COVID-19) pandemic, especially affected are those who have a family to raise and monthly obligations to pay to creditors. It’s a stressful situation if you think your “rainy day fund” is not enough to cover daily expenses and bills for the next couple of months.
The right thing to do if you’re falling behind your mortgage payments due to the COVID-19 pandemic is to call your servicer. If your loan belongs to any of the government-sponsored enterprises (GSE) e.g. Fannie Mae, Freddie Mac, FHA, or VA, you could be allowed to temporarily suspend making your monthly payments.
As a homeowner, your family could be bombarded with the ongoing news on how the new coronavirus of 2019 (COVID-19) continues to impact the nation. Loss of income, job security, confusion, and health are some of the major factors that could increase your stress levels during a pandemic.
Homeowners still paying their mortgage are on the brink of missing their monthly payments when they suddenly lose their jobs. Although mortgage interest rates have become favorable, borrowers who become unemployed could not possibly refinance their current mortgage simply because lenders will most likely not be able to verify that they have a stable source of income to repay the new loan. Their financial situation could be even more frustrating if borrowers don’t expect that they could land a job again anytime soon. Some struggling homeowners, however, may find loan modification a viable option to avoid foreclosure and keep their homes.
Since 2017 home sellers have recognized the potential of the iPhone-only video chat application, FaceTime. While nothing beats the experience of in-person home viewing, video chat apps have become increasingly popular recently because of the COVID-19 pandemic. With video chat apps, home sellers are now able to give prospective homebuyers a walk-through of the property virtually.
It’s a frustrating situation when homeowners start to miss making their monthly mortgage payments. Struggling homeowners are often advised to get in touch with their respective mortgage servicers to help them come up with a workable solution to keep up with their payments and hopefully avoid foreclosure. Homeowners should be familiar with the core duties of the companies that collect their monthly payments so that they can ask the right questions about their mortgage and have an idea of what to expect when they do.
Loan forbearance could be a viable option if you are one of the millions of Americans who have been directly, or indirectly, impacted by the COVID-19 pandemic. Forbearance could help you stretch your remaining funds if you suddenly lose your job or have your income reduced or while waiting for financial assistance from the federal government.
Self-employed homeowners who were able to take out a mortgage to buy a home may possibly refinance their mortgage. Mortgage refinancing could be beneficial in several ways including getting a much lower interest rate, mortgage insurance elimination, cashing-out on home equity, or changing an adjustable-rate mortgage into a fixed-rate mortgage. Refinancing a mortgage as a self-employed homeowner could be a challenge if you’re unfamiliar with the process.