Mortgage Forbearance

​One of the government implementations with COVID is to allow mortgage forbearance for borrowers who are directly affected by the virus. But before you jump for relief, it pays to know the details…..

​There aren’t too many free lunches. And while the stimulus payment handed out last month provided just that for many folks, mortgage forbearance comes with other considerations.
 
Lenders have come out with some guidelines on loans in forbearance, but all is not known yet. Being approved for a forbearance on your loan could have the following negative implications:

• Prevent a future refinance (especially if you’re not current at time of application)
• Damage your chances for a future home purchase
• Possibly add 2nd lien on your home
• Hurt you in the long haul with larger lump sum to catch up on later

 
The above is just a sample list. Again, guidelines aren’t fully established yet. There are still many unknowns at this point as it relates to forbearance.
 
So, we’re not saying you absolutely shouldn’t apply for a forbearance on your existing loan. But be careful haphazardly applying just because it’s available.
 
Simply put – if you don’t absolutely need it, don’t do it just to delay payments. It could be a gamble on your family’s future options.
 
Feel free to contact us with questions…we’re here to help!