Many homeowners in Florida and throughout the country are struggling right now to keep up with their mortgage payments and other bills.
If you are falling short of the financial resources you need to keep up with your own mortgage payments, you should learn about mortgage forbearance.
Below are some of the most important facts to be aware of concerning the option to request a forbearance on your mortgage.
1. Mortgage forbearance exists.
First, it is important to know that mortgage forbearance is an option if you are not aware of it already.
Passed in March, the Coronavirus Aid, Relief, and Economic Security (CARES) Act allows anyone with a financial hardship that is connected to coronavirus to request such a forbearance.
Once the forbearance goes into effect, your mortgage payments are suspended for a period of 180 days. During that time, interest will accrue at the standard rate, and your credit score will not be affected by your failure to make those payments.
If you still cannot make your payments after the 180 days are over, you can ask for 180 more days a forbearance.
2. You cannot get rid of your due payments through forbearance.
It is important not to mistake a forbearance as forgiveness. Any payments which you owe over the period of the forbearance but do not make are not expunged. You still owe them.
3. The payments you put on hold through forbearance will come due.
After the forbearance on your mortgage is over, all the payments that you did not make will be due.
Hypothetically, all those payments are due right away. Most people still will not be able to pay them all at once.
So, you will need to negotiate a solution with your lender. This could be a loan modification for a repayment plan.
It is important that you know what is going to happen after your mortgage forbearance ends. So, ask about it before you choose to request it.
Also, if you want to make partial payments or make full payments some months but not others during the forbearance period, you can do that.
In other words, you can choose to use mortgage forbearance to give you a buffer without relying on it entirely if you prefer.
This is a smart way to use forbearance if you can afford it because it gives you a bit of a safety net, but you hopefully still can keep up with (or mostly keep up with) your payments.
4. You still need to keep paying property taxes and homeowner’s association fees.
During the mortgage forbearance, you do not need to keep paying on your mortgage. But other payments which are required for the maintenance of your property are still due at the same time as usual.
That means you need to make sure that you do not fall behind on your property taxes and homeowner’s association fees.
Have Questions About Mortgage Forbearance?
You now know some important facts about mortgage forbearance. You know what it is and more about how it works.
But you might still have additional questions about mortgage forbearance and how it could affect you.
Premier Lending Corp can answer your questions about mortgage forbearance in Florida and offer you other recommendations for how you can keep up with mortgage payments.
We can also help you investigate whether a mortgage refinance in Davie, FL could reduce your interest. In some cases, that might be all it takes to restore stability to your financial life.
To get started, please call us today at 954-840-8811 to schedule your consultation.