As the COVID-19 situation continues to unfold, we understand that you might have questions about making your next mortgage payment. The Coronavirus Aid, Relief, and Economic Security Act — or CARES — provides temporary relief and the option to request forbearance on your mortgage for up to 180 days. While forbearance may be available, it might not be the best option for you.
Here’s what you should know about forbearance for mortgages:
Forbearance programs are offered as a last resort for those who truly need financial relief. If you are in the position to make a payment, make a payment. Forbearance does not erase what you owe. It only postpones your payments.
Mortgage forbearance provides temporary relief, not forgiveness. At the end of the forbearance period, you are still responsible for repaying any missed payments (plus interest), according to your servicer’s terms. This may require that you pay back the full lump sum at once or even extend the term of your loan. It is very important that you communicate with your mortgage servicer to understand the long-term implications of forbearance.
Before you consider forbearance, let’s talk about a better long-term solution to make your payments more manageable. There are many options to potentially lower your mortgage payment, reduce your overall debt and monthly expenses or provide you with the cash you need during these uncertain times.
Forbearance may be unnecessary. If you want to discuss options that can relieve your financial concerns and keep you current on your mortgage payments, give a Homespire Loan Officer a call today. We’re here to help.