How can i industry sign banking florida forbearance agreement
what do you do if you need mortgage relief due to the coronavirus crisis and you have Carrington mortgage as your mortgage lender my name is Michael was--like I'm a Florida foreclosure defense lawyer with Ricardo and lost like in Florida and with my partner Jason Ricardo we help people just like you overcome foreclosure and debt collection with dignity and today I'm going to tell you what you need to do step by step if you have Carrington mortgage and you need mortgage relief due to the corona virus crisis so first of all it's important to understand what Carrington mortgage is and is not if you're getting monthly mortgage statements from Carrington that does not mean that there are your mortgage lender it means that they are your mortgage servicer the difference is this a mortgage servicer is a middleman Carrington doesn't loan money they are not a lender they processed loans on behalf of the owners of loans so there is some third-party investor over here that is the owner of your loan Carrington is providing them a service of managing the loans processing payments sending out monthly mortgage statements and other items related to the loan management they get a fee for that they pass the rest of money up to the owner of the loan and in discern they're the ones that interact with you the borrower the homeowner in order to make sure that your payments are made on time and your mortgage payments are properly processed so if you are getting monthly mortgage statements from Carrington that means they are your mortgage servicer and they're the ones you need to contact if you need mortgage relief so if you are suffering from an income hit due to the coronavirus shutdown Carrington is who you need to talk to and here's the kind of things that they have available here are the things that you need to ask for here's what you need to request I'm going to go ahead and pull up in just a moment I'm going to pull up the Carrington website because it talks about some of the options available I'm going to explain each of those options that are available I'm going to tell you how to ask Carrington for that relief and then I'm going to tell you what you need to do to enforce your rights at the end and if you need help getting that done I'm going to tell you at the very end of the video exactly what you need to do to get help in order to get this done for you and your family so let me go ahead and pull up the screen for Carrington mortgage and let's see there we go so this is the this is the page that Carrington's put up on their website that talks about what relief is available for the coronavirus crisis and you'll notice that it talks primarily about a forbearance what is a forbearance it is a pause a temporary pause on your mortgage payments so if what Carrington is saying here is that they have forbearance plans for up to 90 days and some of those may be renewable is elsewhere on the website they say they may be renewed but 90 days three months so if you're suffering from a temporary income hit you've lost your job or your employer shut down temporarily you expect to have income in the future or even if you're uncertain about what the future holds for you you can request a forbearance a temporary pause on your mortgage and that is the only relief available today for most mortgage borrowers for most homeowners the only relief available today is a forbearance now when you request a forbearance again Carrington is offering them for 90 days right now and what that means is that if you're afraid of missing your April payment your May payment in your June payment they will give you permission to miss those payments now under federal law the cares Act that passed on March 27 to 2020 if you ask for a mortgage forbearance because of the coronavirus crisis you cannot be your credit report cannot be hurt by that your credit score cannot be hurt by that they are not allowed to report that negatively on your credit report it they may actually report that you got a coronavirus forbearance but that can't hurt your credit under federal law it's not what they're not allowed to let that count against you and the reality is because everyone's suffering the same crisis it probably wouldn't anyway but they're not allowed to report it in a negative way so that's something to be reassured about getting a forbearance won't hurt your credit second thing that you need to worry about is that a forbearance is just a temper cause it doesn't relieve you of the duty to pay those loan that those payments back at the end of the 90-day forbearance period so that doesn't make sense to a lot of people if I don't have the money now how I'm gonna have it 90 days and there are some solutions available depending on who owns your loan depending on who Carrington is servicing the loan for who they're the middleman for and it made it it's going to depend on who owns your loan and what the terms of that of the the relationship is between Carrington and the owner but here are the various types of relief that are available also I forgot to mention you're not going to be charged any fees or late fees or anything like that if you ask for a forbearance they're just gonna hit the pause button and then only at the end of the loan will you have to pay those at the end of the forbearance will you have to pay those back now a forbearance is not taking this month's payment and rolling it to the very end of the loan that's not available for most loans it's not even possible and most people say well isn't that the only thing that makes sense except it's just not possible particularly under Florida law because your mortgage document that the mortgage contract you signed when you got your mortgage doesn't allow the loan to be extended beyond a particular date in order to get that done there's there is something you can do and I'll talk about that in just a moment so what happens at the end of a forbearance will there be a lump sum do now Carrington is saying you know we need more information from the people that we service for from the investors that we work for see it's that it even says here Carrington services Carrington services mortgage loans for investors and repayment options available at the end of the forbearance period will be dictated dictated by investors and insurers so what that means is that is that Carrington is not completely in control of what they're allowed to offer you here are the next steps now before we dig into this I think it's important to remember that you have to think of this as a one-two punch forbearance which is the only thing available right now for most borrowers is the the first punch it's punch number one it's like the it's like the jab and then you follow up with punch number two which is the right hook which is the permanent relief that you're asking for and that that second punch can take a lot of different forms that permanent relief can take a lot of different forms so here's what you need to be looking for carrington lists for different options on its website and most mortgage servicers are going to offer some version of all of these I'm gonna go through them and explain them one by one first of all at the end of the forbearance I'm gonna skip the number 3 here they can extend your forbearance plan so if you've got a 90 day a 3 month forbearance they can say they could say in some loans we'll give you another 3 months if you have a Fannie Mae or Freddie Mac loan it can be six months to 12 months depending on the terms of that loan if Fannie Mae or Freddie Mac is one of the investors on your loan and I'll tell you in a minute how to find that out but you can extend the forbearance a little bit longer extend you know hold down the pause button a little bit longer and that postpones the day on what you have to repay all of those postponed paused mortgage payments so let's look at the other options because those are the ones that are gonna kick in once the forbearance is over once you get to the end of that three months six months twelve months forbearance period however long it is you will have to choose one or more of the permanent options for your second punch for your right close and here's what those options are number one is a repayment plan two is a lump sum payment three is a loan modification it's that third one that I think most people are going to be looking at I'll explain why but first let me take the other two and I'm gonna mix these up in order because I think they're the order of is listed them here is not really the best order to talk about them so pay pay as a lump sum that is that is punch number two by default your forbearance ends you come up with your three months six months twelve months whatever you missed you come up with those mortgage payment span at once now you may be asking yourself how in the world am I supposed to do that if I couldn't pay my mortgage payments during the forbearance how am I supposed to have that money at the end and most people won't be able to do that but there is one way that might work for some people under some circumstances if your home has equity if your home is worth more after your forbearance then you owe on your loan so let's say you borrowed $100,000 and you've paid your home loan down at it's only 50 but your home is worth 150 you have a hundred of equity you can get a home equity line of credit and borrow that three months six months whatever it was mortgage payment from your home equity line of credit and then make that lump sum payment and then will you be paying your first loan and your home equity line of credit you'd be so you'd be making some slightly larger mortgage payments after the forbearance is over most people are interested in doing that but it's it's one way of getting it done if you have equity in your home and if you have a home equity line available to you or your lender you know you have a different Bank that's going to lend you that money that is an option it's probably not what most people are going to want to do now it's also important to remember that that the any any kind of permanent solution to the forbearance problem is gonna it's going to require that you have income at the end of the forbearance period so you're gonna want to make sure that the forbearance extends as long as your income is suffering and once your income returns to normal or close to normal then you're going to be looking for these permanent solutions so the lump sum option would be available to you to some people if you have equity and you have income they've listed option number one is a repayment plan what that means is if you've missed three months they will allow you to repay that over time maybe six months maybe twelve months it's going to depend on again who your mortgage investor is who Carrington is acting for what repayment plans are available and basically you'll negotiate with Carrington in order to get a repayment plan over a particular period of months what that means is it again your monthly mortgage payment will be your regular payment plus whatever repayment plan is for however long that repayment plan exists so for example if your monthly if your monthly mortgage payment is $1,000 and you missed three months and you owe $3,000 you might stress that out over six months pay $500 a month for six months so that your mortgage payment for the next six months after the forbearance is $1,500 instead of a thousand again most people aren't going to want to do that because that's increasing your monthly mortgage payment after the crisis is over is probably not going to be what most people are interested in doing so that's why I think the modification which is the last option listed here that's why I think that's what most people are gonna want to do now let me explain what a modification is a modification is a change in the terms of your mortgage there are four terms that can change generally speaking when you get a modification and a modification is where you negotiate with your existing mortgage servicer your existing lender in order to change the terms of the contracts you already have it's not a refinance that's where you get a loan from somebody else a loan modification is where you when you negotiate with your existing lender to change the terms of your existing loan the four terms that you can change our principal balance interest rate the duration of the loan and the monthly mortgage payment amount and number four depends on the first three so your principal balance let's say you borrowed $100,000 originally that's your principal balance on the loan if you missed three months and it's $1,000 a month they would take that three thousand dollars that you missed add it to the hundred - now you're blown balances 103 the amount you owe as a hundred and three instead of a hundred they increase your principal balance they take that past two amount and roll it into the balance that's called recapitalisation you don't need to worry about that but what it but that increases your principal balance by a little bit in order to make up those past due mortgage payments secondly they can change the interest rate now unless you have recently refinanced your loan or unless you've recently gotten a new home loan it is it is likely that your interest rate is higher on your permanent loan than it could be if you've got a new loan now interest rates have dropped as a result of the current crisis so that means that the Carrington would have some room to give you a lower interest rate than you used to have so if your principle balance goes up and your mortgage interest goes down you might predict that number four your mortgage payment might stay the same or you can go down and that is certainly likely it's certainly possible you might be right you're the changes to your principal balance and your interest rate are going to affect the amount of your monthly mortgage payment and that is something that your mortgage modification will take into account the third thing that they can change the third term they can change out of the four is the duration of the loan so remember I said a deferment is impossible where you just take the arrearage and the lump it on the in the loan well if you modify your loan if you sign a new contract with Carrington then that actually is possible but you have to sign that new contract you have to modify your loan and change the terms so what you might do if your mortgage let's say your mortgage due date the end of your mortgage is January 1st of 2014 you might sign a modification that extends your mortgage to April 1st of 2014 and they just take your existing payments and roll that back onto the end and extend your loan by 3 months that would be a modification they might not change your principal balance they might not change your interest rate they might just change the duration of the loan in order to give you the same monthly payment but but extend the time it's due that's certainly possible however you're probably going to be looking at an increased principal balance you're probably going to be looking at a changed interest rate to reflect the current market conditions and so that is though those I think of the terms that are most likely to change you may see a change in the duration of your loan if it's necessary to get you to a place where you can repay your mortgage with a proper modification now the fourth the fourth term that they can change is the monthly mortgage payments the amount of your monthly mortgage payment is going to depend it's going to depend the principal balance of your loan the interest rate that is charged it's going to depend on the duration of your loan and when they crunch all those numbers using something called an amortization table which is a calculation of how much your principal and interest is on the loan throughout each monthly payment over the lifetime of the loan they will come up with the monthly mortgage payment and that modification will tell you what your monthly mortgage payment will be after they changed the principal balance after they changed the interest rate after they've changed the duration if they do you know or which you know they don't have to change all of those they can change one or more it could be all of them but that will result in your new monthly mortgag
payment which may be the same may be lower it may be slightly higher now it's important to remember that in order to get a modification you have to be making income and a modification on your loan generally is going to require that no more than 31 percent of your income is going towards your home loan so keep in mind that if your income after recovery is drastically less you're gonna need a modification if possible that is that it gives you a monthly mortgage payment that is lower than it is now or at least within that 31 percent so just keep that in mind now for many people once they go back to work their income will be normal again hopefully but it will be what it was before hand or possibly even better if you position yourself properly and so a modification with the same payment or a similar payment will be within reach but that's what you need to ask for again my sense is that for most people for the vast majority of people who need mortgage help you're gonna ask first for a forbearance because that's the only thing available to someone who doesn't have income and the second thing you're gonna ask for is a modification that's your one two mortgage relief punch so now that you know what's available to you first of all if that was clear to you if you have questions about anything I've said go ahead and leave a comment below does it make sense does it seem fair that's the way it works go ahead and leave a comment and I'll do my best to answer all the comments any questions in the comments either in the comments or I'll shoot a new video but I do definitely want to hear back from you about whether you think that makes but now that you know what is available to you now you know how the one-two punch works next you need to know how to ask Carrington to get it done now if you are going to the Carrington site or maybe you've tried to call them on the phone you're gonna know they've got a busy signal in their line they are jammed because everyone who is in your situation is worried about paying their mortgage most people are really concerned about making their mortgage payments are concerned about making sure that they don't lose their homes so what do you do then how do you ask Carrington for a mortgage you know for mortgage relief for that forbearance how do you ask for it I'm gonna pull up some contact information but first I'm gonna say this I do not recommend talking them on the phone for a couple reasons one the phone lines are jammed you're not going to get through if you do you're gonna be waiting on hold for a very long time it's gonna be very difficult for them to get to you on time but number two the things they tell you on the phone don't protect you unless you get it in writing it's not real unless you get it in writing you're not protected unless you get it in writing you don't have any rights if you want to protect your rights get it in writing and make your request in writing that's what I recommend to all homeowners to all borrowers who are concerned about a mortgage crisis a mortgage problem communicate with your lender in writing and do it to the proper address to protect your rights under federal law and under your mortgage contract so let me let me pull up the Carrington contact page so I can show you where to send your written request now again you know Carrington's website they they admit flat out their phone lines are jammed so if you want to communicate with Carrington in writing now this is something new I don't see this a lot I see that there's a fax number there again that doesn't protect you it may be a quick way to reach them but by itself doesn't protect you the only way you can protect your rights under federal law when dealing with a mortgage servicer like Carrington or any other mortgage servicer get in right if I'm beating that like a dead horse it's because it's so important I wanna make sure you understand you must you must you must protect yourself by doing things and right now correspondents please send written correspondence including errors an information requests inquiries or complaints sharing concerns to Carrington mortgage services LLC it's P o box 5001 Westfield Indiana four six zero seven four so that's this at this address right here that I'm highlighting on the screen it's the Westfield Indiana address it's available you know on the Carrington Contact Us website and you want to look for the mail option for correspondence and then go to this address now here's what I want you to do I want you to write them a letter I want you to send it by certified mail and I want you to keep a copy of everything you write and here's why the letter you send requires them to acknowledge within five days that they got it and to requires them to give you a subjective answer a real answer within 30 days so that so that when you send them a request your rights are protected if you get a certified mail receipt you can prove that you mailed a letter if you keep a copy of what you sent you can prove what's in the letter if you have to find yourself in court to protect your rights or to sue them for violating your rights you have that documentation it is absolutely essential to document it in writing what should the letter say there's a few things I generally recommend asking your mortgage lender first of all find out who owns your loan because remember the owner of your loan is going to affect what remedies you have available what relief is available to you for example if they let you know that your your loan is owned by Fannie Mae or Freddie Mac that that will clue you in that you should be eligible for Fannie Mae programs that you might learn about through other means either here on the web site or on the on the channel or by reading news articles or whatever so you want to find out who owns your loan because that might affect what rights you have or what programs are available to you number two you want to say I am learning I want to learn more about what mortgage relief options are available to me if I'm suffering from an income loss due to the coronavirus you want to use those words you want to expressly invoke the current pandemic the national emergency you want to mention that you are asking for mortgage relief and you may want to say can I get a forbearance can I get a modification ask for those things by name because when you do if you use those words I'm asking for mortgage relief I'm suffering from the corona virus pandemic I'm looking for a modification I'm looking for a forbearance it requires them to respond and it gives you certain rights that are protected under federal law so you want to mention that so number one who owns my loan number two what programs are available what mortgage relief programs are available to me if I'm suffering from income loss you're the corona virus pandemic number three you want to make sure that they have your address to correspond with and number four you you really want to make sure that you are very very clear about the fact that you are asking for mortgage relief that you're currently suffering a loss of income you know it doesn't have to be the letter doesn't have to be a literary masterpiece it just has to contain those basic elements you need to let them know you might want to include for example monthly mortgage statements so they can identify your loan a loan number so they can identify your loan but you you want to ask for mortgage relief you want to ask for the owner of your loan you want to invoke the current national emergency tell them that you need help and send it by certified mail return receipt keep a copy keep the receipt when you get it and then when they respond to you that is when you'll be able to get the help you need they might ask you to be able to apply for something they might just tell you if you're asking for a forbearance there's it there's 90 days it's going to depend again on the individual servicer and who they are working for so that is what you need to do if you want mortgage relief from Carrington mortgage services under the current coronavirus pandemic national emergency now if you have a question about anything I've said feel free to leave it comments below if this has been helpful for you go ahead and hit the like button thumbs up because what that will do is it'll help share this information with other people who like you might benefit from it so you're helping other people out there and you're also helping us get the word out about how people can be helped if they have caring's mortgage and then if you are if you have any other questions about mortgages foreclosures credit reporting debt collection of any kind especially during this time of crisis check out the other videos in the channel and consider subscribing because if if you bought this with video was helpful you might find a lot of the other videos we've shot to be very very helpful as well and so those would be useful for you so check out the other videos consider subscribing so that you don't miss any future content about any future tips that we give out about how to avoid foreclosure about how to protect your rights under a mortgage about how to protect yourself from debt collectors protect your credit score during this time of crisis and so on so go ahead and and follow the channel subscribe the channel look at the other videos and check it out and lastly I said I'd be mentioning this if anything about this seems like it's too complicated if you think you need help if you're already in a position where you know you need professional help especially if you're in Florida because we're only allowed to help people in Florida but if you're in Florida and you know you need help already give us a call and we will give you a free 30 minute strategy session mention this video the Carrington mortgage relief video and we'll give you that free 30 minute session call us at three five two five six seven three one seven three that's three five two five six seven three one seven three our staff is working remotely right now so the phone lines may be a little difficult to get through but we're gonna do our best to get to everybody who calls so again that number is three five two five six seven three one seven three if you call mention this video we will give you a free 30-minute strategy session on how to get mortgage relief with Carrington mortgage so I hope this video has been helpful for you again you know leave a like subscribe to the channel comment with any questions thank you for watching stay safe out there and I'll see you on the next one
