False: Wait until you miss a payment to call your mortgage servicer. You should not wait until you miss a mortgage payment if you are experiencing any financial hardships from the virus to contact your mortgage servicer. They are here to help! Ask about mortgage assistance options that could be available to you while you are trying to make payments to avoid any unnecessary hardship. Options like pausing or even lowering your current payments until you can get back to a better normal. Look up resources about forbearance options
False: Setting up a forbearance plan is going to be a long and difficult process. Contrary to that belief, it is actually quite easy and quick. In only four steps you can have your forbearance plan set up! Be aware that you are one of many who are looking to set up a forbearance plan so wait time might be longer than usual and may be able to do everything digitally.
False: I need to have a sizable amount of financial documentation to show that I’ve been impacted by COVID-19. If your mortgage is covered by the CARES Act (Coronavirus Aid, Relief, Economic Security Act) then you actually do not have to provide any large amounts of documentation to prove your hardships. Make sure to check the website of your mortgage servicer before reaching out to see their options on forbearance plans and to see if you can just apply online. Have your account number and any questions that you may have about these options ready when you are about to speak to a representative.
False: I will have to pay all my missed payments at once when the forbearance plan ends.
So first things first, forbearance does not reduce your or “forgive” the amount you owe. You will need to contact your mortgage servicer to set up a payment plan for your remaining unpaid amounts once your forbearance period ends, not all of the payments at once or even pay portions of your missed amounts in addition to your regular payments. However, if you do it will just restore your loan and put you back on track to regular payments until all the unpaid amounts are paid for.
False: My credit score will go down because of a forbearance plan.
Your servicing company will report your loan as current to credit reporting companies as long as your loan has been covered by the CARES Act and if you were current on your payments before receiving a forbearance plan related to COVID-19.
False: Setting up a forbearance plan will make me ineligible for refinancing or new mortgage loan.
As long as you are continuing to make payments on time you are still eligible for a new mortgage. You may be qualified for a refinancing or another home loan in the event that you have settled any missed payments through a reinstatement or have made three payments on time either as per repayment plan or following an payment deferral, or finished the trial period for payments regarding an alteration. Contact your mortgage servicer to examine your alternatives as other qualification necessities may apply.
False: Contacting my mortgage servicer about a forbearance plan will automatically put me on a forbearance plan.
Contacting your mortgage servicer will only provide guidance to help you weigh out all of your options. If you want to ask for a forbearance plan than the mortgage servicer will guide you through the next steps to take to get a plan that works for your specific needs.
False: If I’m placed in a forbearance plan that I did not ask for then I just have to stay in that plan until the period ends.
Contact your mortgage servicer immediately if you see that you have been placed in a forbearance plan that you did not request. It is not expected of you to accept something you didn’t request. Your options should always be communicated to you if you are finding yourself going through difficult times.
As your mortgage originator, my role is to help you navigate these changes and find the best possible mortgage rate. It’s crucial now more than ever to explore all your options and find the one that fits your specific situation. Buying a home is a significant decision, and I’m committed to ensuring you get the best deal.
Reach out today! Call or text me at 863-694-1232, or email me at [email protected].
Jonathan K. Davis, NMLS# 314966
Homefront Mortgage, LLC – Company NMLS: 1611328
