I've had some friends out of work due to the coronavirus pandemic and wondering if they should look into getting mortgage deferment from their bank. I know of someone who asked for a four month deferment, so they don't have to pay for the next four months, and they were told they will have to make all four months worth of payments at the end of that time period! Not the best solution!
Important questions to ask regarding mortgage forbearance
- When does the forbearance/deferred amount have to be paid back?
- What happens if the forbearance/deferred amount can't be paid back?
- Will they do any negative credit reporting if the loan is put into forbearance or deferment?
- Will taking forbearance/deferment prevent the loan from being re-financed in the future?
- If a loan modification is done, will the interest rate be affected?
And here is a helpful web site from the Consumer Financial Protection Bureau with lots of good information: Guide to Coronavirus Mortgage Relief Options
Most importantly, tell us how you and your family are doing. Can we help in any way? Call our office at (225) 298-6900 or my cell phone (225) 202-7935.
Hope you are staying in and staying safe! Leslie Green