Help Me With Sign Ohio Banking Forbearance Agreement

Can i industry sign banking alaska forbearance agreement

hey it's Kevin a maul spine Financial Group we're tailors so you succeed hey you found us here on Facebook or on YouTube be sure to hit like subscribe and leave some comments below we'd love to interact with you especially during these trying times today I want to talk about forbearance agreements and specifically how it relates to covin 19 and even more specifically real estate investors during covin 19 so quickly a forbearance agreement is when you are able to defer or miss some mortgage payments without a foreclosure action oftentimes they would continue to report defaults on your credit report but because of the cares act any loan that's sponsored or owned by the government would be FHA VA Fannie Mae Freddie Mac any of those they're not going to be reporting the lates on the credit report so it can be pretty attractive for investors I can see this oh you're collecting rents in and you could defer your payment's on your loan build up this little cash reserve stack some cash in the bank makes sense well I want to talk about three today three myths about forbearance agreements as well as three deadly facts little-known deadly facts that I think every real estate investor should know first a few of the myths and these are actually pretty positive the first one is if you do a forbearance agreement with the loan service or any payments that are prepared or moved you'll have interest accruing on those well that's actually not true you will owe the money back but you're not going to continue to accrue interest on interest so that is definitely a myth the second one is that you have to qualify for these this is really scary because you don't need to qualify you literally just need to call the loan servicer and tell them that you're affected by Kovan 19 and you want to do a forbearance and any loans that are government supported or owned they're gonna grant you 180 days for free of forbearance if you need more time they're gonna grant you a 180 day extension with no bank statements no qualifying of any kind that's very scary because a lot of people were gonna try to take advantage of this but there are some deadly facts so we're going to talk about as well and the last myth is you're gonna have to pay it all back in one lump sum payment that's not true in fact there's multiple options to pay back the loan and it's going to be a negotiation between you and the loan servicer so the loan servicer is supposed to call you within 30 days at the end of the forbearance agreement and offer it either a lump sum payment if you can afford it spread the payment over 6 or 12 months so you just have a little higher mortgage payment every month until you can get caught back up or they'll add it to the loan and extend the loan out and the fourth repayment option that they're allowed to use or at their disposable disposal is just adding those payments to the end of the loan ok so those are the myths so sounds very attractive why wouldn't everybody be doing this especially real estate investors well here are the deadly facts the little-known deadly facts about forbearance agreement during covin 19 first of all the money is not forgiven there were some rumors that hey you've missed 3 or 4 months of payments in you're in a forbearance agreement they're just gonna forgive those part of the government stimulus part of the carers Act that's absolutely not true you will owe the money the second one is it's gonna hurt your ability to borrow and this is the one that I've been reading a lot about and there's a lot of confusion about it but it's absolutely true it will impact your ability to borrow money especially in the short term there are lenders some of the larger lent lenders that are already writing or doing underwriting guidelines around forbearance agreements during this time and they're gonna require you to seize in the forbearance agreement two to four years so after you complete your forbearance agreement which is one or two years let's say and you or a year let's say then you're gonna have to wait two to four more years before you could borrow money again on another loan and this is gonna be Fannie Mae and Freddie Mac which most of us that's where we're going to to borrow money almost all of the loans for real estate investors are owned by Fannie and Freddie so how is that true if we've already heard that they're not going to report the lates on the credit bureaus it's not going to impact your credit score at all well that's true it's not going to impact your credit score and it's not going to show up on your credit report as missed payments what it will do however is show up as deferments or a forbearance agreement on your credit report and like I said the large lenders are already creating underwriting guidelines around this so if your real-estate investor you want to take advantage of good deals hopefully that we see coming in the next year or two I would absolutely stay as far away from forbearance agreements as I can and then the third fact deadly fact is do you realize that when you don't make them payment to the loan service or that loan servicer is still required to make a payment to the owner of that loan if a lot of people are taking advantage of this forbearance agreement especially ones that don't need to that's going to create tremendous strain on lenders and loan servicers they will actually go out of business which is going to create credit tightening which we saw in 2008 I'm not saying we're gonna see 2008 again in fact I think it's pretty far from that but it does put a strain on the economy and it could hurt housing and frankly it's just not the ethical thing to do in my humble opinion if you can afford to make your payment's forbearance is an option for you but I don't think you take advantage it for the three reasons we described okay especially not being able to borrow money again and that's the ones confusing people you guys it's absolutely true lenders will see this as a forbearance and they won't lend you money in the future I hope you enjoyed the video if you disagree with me agree with me leave me a comment I'd love to interact with you and we'll catch you next time check us out Pine Financial Group calm [Music]