Editorial | One of the hottest trending topics in the housing industry during the pandemic has been Forbearance. Millions of borrowers across the United States have been directly or indirectly impacted financially by the volatility of the current market and could potentially benefit from seeking a Forbearance. Many borrowers, however, are unfamiliar with how this type of mortgage relief program works. Borrowers must keep in mind that forbearance doesn’t erase what they owe. Instead, it provides options on how they can affordably repay missed payments later on. In essence, a forbearance is a written agreement that allows a borrower to reduce or suspend monthly payments for a specified time.
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.
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.
Are you considering a Forbearance on your mortgage even though you may have considerable assets or equity in your home? Please understand the impacts of Forbearance on your financial future before making this critical decision.
The new coronavirus disease of 2019, or COVID-19, continues to plague homeowners nationwide. The Federal National Mortgage Association (a.k.a. Fannie Mae) offers mortgage relief options to homeowners who have been affected by the pandemic disease.
Mortgage forbearance is an option available for U.S. homeowners who temporarily could not pay their monthly mortgage. Homeowners in the U.S. who are experiencing financial hardships as a result of the pandemic coronavirus disease, or COVID-19, were recently encouraged to get in touch with their respective mortgage servicers to possibly prevent losing their homes.
Starting to miss a mortgage payment is stressful. Mortgage servicers or lenders provide several options for homeowners, depending on their situation, who are struggling to pay their monthly mortgage. Mortgage forbearance is one of the few options mortgage servicers may offer to give distressed homeowners temporary relief with their mortgage obligations.