Not if you have an FHA, VA, USDA, Freddie or Fannie backed mortgage (which captures about 70% of the mortgage market). After forbearance, which is authorized by the CARES Act to be an option for up to 360 days, an analysis by the servicer will be conducted of your financial situation (with documents, applications, etc) to determine the repayment options which may also depend on loan type. Some options: lump-sum, repay over time, add to the end of the loan with either a balloon or additional months of payment, or if income is reduced, apply for a loan modification. That process has, at this time, no statute or guidance to provide clarity and will be a complete mess because: mortgage servicers. Another thing for homeowners to consider is if they pay property taxes and insurance and HOA dues on their own (not escrowed and paid through their mortgage servicer), those payments will have to be kept current and if those expenses are escrowed, it's possible those expenses will have to be repaid somehow upon exiting forbearance even if the principal and interest are shifted to the end of the loan.
Yes, links are available for Freddie and Fannie lookup tools. Your original mortgage documents and possibly notations on your credit report entries will refer to FHA or VA. If you are having trouble with a mortgage servicer, there are 1) free HUD counselors, 2) file complaint with the CFPB (those complaints are anonymized and can be viewed by media and researchers who can use them to expose homeowner harms), your state and federal lawmakers, and your state AG; 3) file a complaint with FHFA (Freddie & Fannie loans), VA for VA loans, HUD for FHA loans and USDA for those loans.
From CFPB website: Forbearance does not erase what you owe. YouтАЩll have to repay any missed or reduced payments in the future. So, if youтАЩre able to keep up with your payments, keep making them. The types of forbearance available vary by loan type.
So the payments will be due at some point. WHEN is not spelled out or clear as far as I can tell
Still unclear: will payments not made during forbearance be due at the end or not?? Thanks MT
Not if you have an FHA, VA, USDA, Freddie or Fannie backed mortgage (which captures about 70% of the mortgage market). After forbearance, which is authorized by the CARES Act to be an option for up to 360 days, an analysis by the servicer will be conducted of your financial situation (with documents, applications, etc) to determine the repayment options which may also depend on loan type. Some options: lump-sum, repay over time, add to the end of the loan with either a balloon or additional months of payment, or if income is reduced, apply for a loan modification. That process has, at this time, no statute or guidance to provide clarity and will be a complete mess because: mortgage servicers. Another thing for homeowners to consider is if they pay property taxes and insurance and HOA dues on their own (not escrowed and paid through their mortgage servicer), those payments will have to be kept current and if those expenses are escrowed, it's possible those expenses will have to be repaid somehow upon exiting forbearance even if the principal and interest are shifted to the end of the loan.
Thank you for the details. How do you know if you have a "FHA, VA, USDA, Freddie or Fannie backed mortgage"? Thanks!
I found the answer! https://www.consumerfinance.gov/about-us/blog/guide-coronavirus-mortgage-relief-options/
Yes, links are available for Freddie and Fannie lookup tools. Your original mortgage documents and possibly notations on your credit report entries will refer to FHA or VA. If you are having trouble with a mortgage servicer, there are 1) free HUD counselors, 2) file complaint with the CFPB (those complaints are anonymized and can be viewed by media and researchers who can use them to expose homeowner harms), your state and federal lawmakers, and your state AG; 3) file a complaint with FHFA (Freddie & Fannie loans), VA for VA loans, HUD for FHA loans and USDA for those loans.
From CFPB website: Forbearance does not erase what you owe. YouтАЩll have to repay any missed or reduced payments in the future. So, if youтАЩre able to keep up with your payments, keep making them. The types of forbearance available vary by loan type.
So the payments will be due at some point. WHEN is not spelled out or clear as far as I can tell
So, that could cause a crisis of sorts when all of the money is due. Wouldn't you think?