Mortgage forbearance?

Not saying it will be straightforward…

What I AM saying…if a state Governor makes a decree…and the financial institutions do not follow it… that will cause at least a pause…and in my opinion, a forbearance for a length of time.

This is fair, and equitable. I hope it comes to pass, for the vast majority of hosts here…

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Generally, forbearance simply lets you stop making payments without penalties (no late fee, no missed payments on your credit report) for some amount of time, but you still accrue interest on the principle. The downside is that the principle gets bigger because you are not paying the accrued interest when you stop making payments.

It can keep you from losing your property, but it may not be a smart financial move. If your principle rises from not making payments and at the same time, the value of your property falls due to a real estate market decline, you could be “upside down” in your loan for many years.

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From what my bank told me the disaster declaration may allow me to refinance at the end of the forbearance period, at a considerably lower interest rate than my 16th of 30 year mortgage is now. The value of the house has doubled during that time. Fannie Mae doesn’t want any more foreclosures if they can avoid it. It also helps that my loan is serviced by my small statewide bank where I have been banking for 67 years.

I imagine you’re very safe in terms of being upside down. However, being able to refinance could be tricky if you if you rely on your STR income and you just haven’t had much in the previous months.

Just as banks were beginning to accept this as a legit income source, this happened. It’s going to affect more than just mortagages and refi.

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