All you need to know about the Mortgage Forbearance! YOU DON'T WANT TO MISS THIS ONE! - EDDIE BLANC
#MORTGAGEFORBEARANCE #STRATWELL #EDDIEBLANCO Miss mortgage payments for up to 12 months, that sounds great. The trouble is that Mortgage forbearance is not as simple as it may seem. In this video we will cover details about things you need to know. Before you miss a mortgage payment watch this video. The FHFA, Federal Housing Finance Agency put out regulation to Fannie Mae, Freddie Mac and HUD. This regulation comes as a result of the CARE ACT. Homeowners can receive up to 12 months of mortgage forbearance due to this new regulation. Because of the CARE ACT, borrowers can receive the initial forbearance without providing proof that they are in hardship. A borrower can simply call their loan service and request a forbearance and if there loan is owned by Fannie Mae, Freddie Mac and HUD, then the service's are required to offer forbearance. Fannie Mae, Freddie Mac and HUD (through FHA) provide liquidity to the market place by offering to purchase ( or insure) the loans created by banks. This is an oversimplification of the way it works, but we want the average person to understand. Lenders create loans that fit the minimum lending criteria set by Fannie Mae, Freddie Mac and HUD, then they can sell the loan to them. In the end, your loan is owned by Fannie Mae, Freddie Mac and HUD. Your mortgage payments go to a loan servicer that is paid to manage the loan on behalf of the loan owner. You pay ABC mortgage, which is your loan servicer. The Loan servicer is responsible for loan payment collections, your mortgage statement, management of your escrow account, making sure you keep the home insured, etc. They make sure that you and the loan owner keep within the agreement and within the Federal and State Laws. Your loan servicer is responsible to work with you when you are in default. Here are the things you need to know about mortgage forbearance under the CARE ACT This requirement that mortgage forbearance be offered to borrowers up to 12 months only applies to mortgages owned by Fannie Mae, Freddie Mac and HUD. Under CARE ACT, you are not required to proof hardship in order to qualify for mortgage forbearance. While you are not making your mortgage payments, your loan servicer is required to continue to pay the interest payment to the loan owner. Loan servicers do not like that and many argue that this can cause a bigger financial problem, if loan servicers become unable to make the payments on all the loans in forbearance. This is not missing payments or free mortgage period. You will owe ALL the money. At the end of your mortgage forbearance period, you will need to PROVE that you were in financial distress and UNABLE to make your payments when you made the request for mortgage forbearance and that you remained in distressed and unable throughout the forbearance period. In most cases the mortgage forbearance is due at the end of the forbearance period. So if you miss 3 payments, for example, ( May $2000 , June $2000, July $2000) on August 1, you owe $8000, which includes the 3 months of forbearance and the current month. There are three basic options at the end of your mortgage forbearance period Lumpsum: In the example above, you would pay the $8000 and become reinstated. If you did not have $2,000 in May, it is not likely that you will have $8000 in August. Payment Plan: In the example above, you would make your August payment of $2000 and make an agreement with the loan servicer to pay back the $6000 over a short-term period, usually with a 6 month period. Mortgage Loan Modification: The loan terms, which can include the total amount owed, the length of the loan, the interest rate of the loan, etc. The issue with a loan modification is that you have to prove that you were in hardship and you have to qualify for the modification and prove that you can make the payments, based on the guidelines set by the Loan Owner and the Loan Servicer. The bottom line is to avoid mortgage forbearance. This is only designed for people that really need it. This is not a mortgage break. Do not miss payments. Pay your mortgage as a priority. I went through 2008 and saw way too many people lose their home to foreclosure. I do not want to see if happen again. Do not play games with your mortgage. If you can find a way to make your payments, make them. If you can not make payments and you have no other way of making payments, here are 3 suggestions. With permission and if allowed by your State, record the calls with your loan servicer. Have an attorney review anything you sign. Keep excellent financial documentation. Document all printout, invoices, checks, receipts, and statements. Keep a ledger of all money in and all money out. Be prepared to explain and show PROOF of all financial activity. FOLLOW OUR Instagram: @Stratwell_RE https://www.instagram.com/Stratwell_RE FOLLOW OUR FACEBOOK: @STRATWELL https://www.facebook.com/Stratwell Subscribe! Subscribe! Subscribe!
#MORTGAGEFORBEARANCE #STRATWELL #EDDIEBLANCO Miss mortgage payments for up to 12 months, that sounds great. The trouble is that Mortgage forbearance is not as simple as it may seem. In this video we will cover details about things you need to know. Before you miss a mortgage payment watch this video. The FHFA, Federal Housing Finance Agency put out regulation to Fannie Mae, Freddie Mac and HUD. This regulation comes as a result of the CARE ACT. Homeowners can receive up to 12 months of mortgage forbearance due to this new regulation. Because of the CARE ACT, borrowers can receive the initial forbearance without providing proof that they are in hardship. A borrower can simply call their loan service and request a forbearance and if there loan is owned by Fannie Mae, Freddie Mac and HUD, then the service's are required to offer forbearance. Fannie Mae, Freddie Mac and HUD (through FHA) provide liquidity to the market place by offering to purchase ( or insure) the loans created by banks. This is an oversimplification of the way it works, but we want the average person to understand. Lenders create loans that fit the minimum lending criteria set by Fannie Mae, Freddie Mac and HUD, then they can sell the loan to them. In the end, your loan is owned by Fannie Mae, Freddie Mac and HUD. Your mortgage payments go to a loan servicer that is paid to manage the loan on behalf of the loan owner. You pay ABC mortgage, which is your loan servicer. The Loan servicer is responsible for loan payment collections, your mortgage statement, management of your escrow account, making sure you keep the home insured, etc. They make sure that you and the loan owner keep within the agreement and within the Federal and State Laws. Your loan servicer is responsible to work with you when you are in default. Here are the things you need to know about mortgage forbearance under the CARE ACT This requirement that mortgage forbearance be offered to borrowers up to 12 months only applies to mortgages owned by Fannie Mae, Freddie Mac and HUD. Under CARE ACT, you are not required to proof hardship in order to qualify for mortgage forbearance. While you are not making your mortgage payments, your loan servicer is required to continue to pay the interest payment to the loan owner. Loan servicers do not like that and many argue that this can cause a bigger financial problem, if loan servicers become unable to make the payments on all the loans in forbearance. This is not missing payments or free mortgage period. You will owe ALL the money. At the end of your mortgage forbearance period, you will need to PROVE that you were in financial distress and UNABLE to make your payments when you made the request for mortgage forbearance and that you remained in distressed and unable throughout the forbearance period. In most cases the mortgage forbearance is due at the end of the forbearance period. So if you miss 3 payments, for example, ( May $2000 , June $2000, July $2000) on August 1, you owe $8000, which includes the 3 months of forbearance and the current month. There are three basic options at the end of your mortgage forbearance period Lumpsum: In the example above, you would pay the $8000 and become reinstated. If you did not have $2,000 in May, it is not likely that you will have $8000 in August. Payment Plan: In the example above, you would make your August payment of $2000 and make an agreement with the loan servicer to pay back the $6000 over a short-term period, usually with a 6 month period. Mortgage Loan Modification: The loan terms, which can include the total amount owed, the length of the loan, the interest rate of the loan, etc. The issue with a loan modification is that you have to prove that you were in hardship and you have to qualify for the modification and prove that you can make the payments, based on the guidelines set by the Loan Owner and the Loan Servicer. The bottom line is to avoid mortgage forbearance. This is only designed for people that really need it. This is not a mortgage break. Do not miss payments. Pay your mortgage as a priority. I went through 2008 and saw way too many people lose their home to foreclosure. I do not want to see if happen again. Do not play games with your mortgage. If you can find a way to make your payments, make them. If you can not make payments and you have no other way of making payments, here are 3 suggestions. With permission and if allowed by your State, record the calls with your loan servicer. Have an attorney review anything you sign. Keep excellent financial documentation. Document all printout, invoices, checks, receipts, and statements. Keep a ledger of all money in and all money out. Be prepared to explain and show PROOF of all financial activity. FOLLOW OUR Instagram: @Stratwell_RE https://www.instagram.com/Stratwell_RE FOLLOW OUR FACEBOOK: @STRATWELL https://www.facebook.com/Stratwell Subscribe! Subscribe! Subscribe!