Real Estate News: Understanding Forbearance
With millions of Americans in forbearance on their mortgage, it can be tempting to take this opportunity to ease your financial burden. However, our Real Estate Sales Manager, Rainbow Russell sat down with two of our local experts to dig deeper on what you need to know when making this decision.
Watch Rainbow with Matt Meetre, CRG Realtor and Beach Credit Repair owner, along with Cole WIlliams, Mortgage Team Leader at Revolution Mortgage discuss forbearance and how this can impact your finances.
Forbearance Facts Any Homeowner Should Know
- The CARES Act allows for homeowners who are experiencing a COVID-19-related hardship to request forbearance for 6 months.
- Each servicer handles forbearance differently. It’s important to contact your lender to fully understand what options are available to you .
- Understanding what happens at the end of the forbearance period is key! You may be required to pay it all at once or it could be simply added to the end of your loan.
Protecting Your Credit
It’s important to only use forbearance if it’s absolutely necessary as it will impact your credit. During the time you are in forbearance your payment won’t be late however your mortgage statement will show you are unable to make your payment, therefore you will be ineligible for a new mortgage or a refinancing for a period of time.
Your mortgage payment is likely the most essential payment you have. Start with making this then focus on having a little extra cash on hand for food and life expenses, your car payment and utilities. Many credit companies are assisting with payment delays so reach out to your debtors as well as utility companies to see what help is available so that you can continue to make your mortgage payment.
LET'S TALK ABOUT YOUR UNIQUE SITUATION
Our job as your Realtor and Home Builder goes far beyond handing over the keys to your new home. We want you to be equipped with the information you need to make an informed decision. Navigating the stream of services designed to help during the months since COVID-19 started can be difficult. Our team is here to help you make an informed decision, contact us anytime for more information.