Can you make your mortgage payment?
? Step 1. Make it & be grateful
⌛️Can’t make your mortgage payment?
? Step 1 . Know your options & don’t despair
? Step 2. Check your servicer’s website for options
? Step 3. Prepare for long hold times & call your servicer
? Do NOT stop making payments without a plan in place
What is forbearance?
Paused Payments Option-Paid During Existing Mortgage: Your servicer allows you to stop making payments for six months, but you must pay everything back at once when your payments are due again.
What to consider:
You may owe a big bill that comes due all at once. For example, if your servicer allowed you not to pay your mortgage for six months, at the end of the forbearance period, you may owe all six of your missed mortgage payments in one month
Interest on the paused amounts will continue to accrue until you repay them.
Mortgage Payment Reduction Option: Your servicer allows you to reduce your $1,000(Example) payment by half for three months. After the three months are over you have to pay back the amount of that reduction.
What to consider:
The amount of the reduction will be spread out over 12 months and added to your mortgage payment once the reduction period is over. This means your monthly mortgage will increase during that one year period.
Paused Payment Option-Paid Back At End of Mortgage: Your servicer allows you to pause payments for one year, and that amount is repaid by either adding it to the end of your mortgage loan or by you taking out a separate loan.
What to consider:
You can extend the term of your loan for some amount of time to pay back the paused payments or take out a separate loan.
Extending your loan means the missed payments will be added to the end of your loan. For example, if you were given a 12 month period where you didn’t have to pay your mortgage, you will have 12 months of payments added on to the date when your loan was supposed to be paid off by
Extending with a separate loan means when your mortgage is due, you will also have to pay off this separate loan. This is like a balloon payment, which is one large payment due at the end of your loan.
Interest on missed amounts will continue to accrue until you repay them.
☎️Call me with questions and to help guide you through the process for FREE!
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