04/13/2020
⚠️ATTENTION!
‼️READ THIS BEFORE YOU TAKE THE FORBEARANCE OPTION ON YOUR
MORTGAGE!!!!!!‼️
Forbearance DOES NOT equal forgiveness Let’s do some ‘mortgage
forbearance math’. ⬇️ ----- Mom and Dad have a mortgage.
It's currently $1,500 per month.
Dad gets laid off, calls the servicer, and asks for forbearance.
In one phone call, he gets 6 months "off" from paying.
Seven months later, Dad is finally back to work, and hasn't been able to save any money during the forbearance.
Forbearance is lifted and servicer says, "That will be $9,000 +
$1,500, which is now due". ($10,500) Dad almost passes out and says,
“WHY??"⁉️
Servicer: "That's the 6 months of forbearance plus the current month.”
Dad: "I can’t do that; can we work something out?"
Servicer: "Sure, we will spread out the $9,000 over 12 months."
Dad: "Phew....ok, good. What will that look like?"
Servicer: That will be $2250 a month for the next 12 months."
Dad: " OMG!!! I can't afford that."
Servicer: "Sorry...."
Dad: "Can I refinance?"
Servicer: "No because the loan went into forbearance."
Dad: "What can I do?"
——————————————
🔴Forbearance is often misinterpreted. 🔴
Many people are mistakenly thinking that forbearance equals loan forgiveness. It does NOT.
This is truly intended as temporarily relief for those who need it most and have no other way.
Your payments will need to be caught back up when the forbearance period is over. There is absolutely no financial benefit by exercising forbearance, as you will either have to pay a lump sum, modify your loan, or owe the balance before you can refinance or when you sell your home. If your forbearance has not been caught up then it could hinder you from purchasing a home or refinancing if there is an outstanding forbearance.
🔙This should be the absolute last resort and exercised if you have no other options. If you really need to exercise forbearance, you cannot just decide to stop making payments. You must notify your Mortgage Servicer and agree to the forbearance terms.
I highly recommend that if you can make the payments you don’t go into forbearance. A fair amount of people will regret that decision later.
There is confusion out there and I am getting tons of questions. I just want to help people understand the seriousness and help everyone out there I can.
If you have questions
☎️ me 586-707-3841
Email [email protected]
We are in unprecedented times but this too shall pass. Hang in there everyone! ❤️❤️❤️
