Sign Alabama Banking Forbearance Agreement Free

Industry sign banking alabama forbearance agreement free

hey welcome back it's jason walter here the foreclosure and eviction moratoriums have been extended yet again in addition the deadline to request an initial mortgage forbearance for those with an fha loan has also been extended the key word there is initial because i'm seeing a lot of misinformation out there which is one of the main reasons why i'm making this video for you there's lots to discuss here so please smash the like button and also subscribe if you haven't done so already and let's go ahead and dive right into the video the federal housing finance agency or the fhfa announced the extension of the foreclosure and eviction moratorium until february 28 2021. this applies to mortgage loans that are backed by fannie mae or freddie mac this foreclosure moratorium only applies to single-family homes not multi-family properties the previous moratorium was set to expire at the end of january in addition for homeowners with a mortgage backed by fannie mae or freddie mac you still can request from your loan servicer which is the company you pay your mortgages to to get up to a 12 month forbearance which basically means you can stop paying your mortgage for up to 12 months however here's a key change that i noticed and this is very important to know about this so it says on their website you can request a forbearance whether their hardship was caused by covin 19 or not wow because the according to karzak that was passed in late march of last year you only can enter into a mortgage loan forbearance if you had a financial hardship due to covet 19 whether indirectly or directly to show you proof of this i actually looked up the cares act bill itself again this is the act that was passed in late march of last year i looked on page 210 it says the following a borrower with a federally backed mortgage loan experiencing a financial hardship due directly or indirectly to the coven 19 emergency may request a forbearance on the federally backed mortgage loan now the big difference is of course you simply only have to have a hardship it doesn't have to be related to covet 19. and of course here's another friendly reminder that you are not required to make a one-time balloon payment of all your missed mortgage payments when exiting your forbearance if you have a federally backed mortgage that is a common myth so in general there are a few options that you may qualify for including a repayment plan loan deferral or a loan modification check out consumerfinance.gov or knowyouroptions.com for more information about that and also made a video about that as well about what options homeowners have once they exit their forbearance and i'll leave a link to that video in the description below and changing gears slightly i also noticed that for fha backed single-family mortgages the eviction and foreclosure moratoriums were extended until march 31st as well so together this is causing foreclosures and evictions to be at very very low levels in mortgage forbearance news i noticed that the federal housing administration or the fha announced an extension of forbearances for homeowners who have an fha loan now this is super important because this is where i'm seeing a lot of misinformation about this which is one of the purposes of this video i'm not going to name names so let's go over exactly what this announcement says so we have a clear picture about what is really going on here it states that the federal housing administration or the fha announced it will execute the biden administration's request to extend the deadline for borrowers with fha insured mortgages who are struggling financially due to cova 19 to request and receive mortgage payment forbearance from their mortgage loan servicer again that's the company you pay your mortgage to it goes on to say that the new deadline is march 31st 2021 allowing borrowers additional time to request and obtain up to six months of an initial pause in their mortgage payments the keyword there is initial because this is not giving you an additional six months on top of the 12 months that is already allowed in order to have a mortgage loan forbearance in other words if you have not entered into a forbearance yet you have until march 31st to do so unless it gets extended yet again it goes on to say in this report that the fha requires mortgage servicers to provide up to six months of covid19 forbearance when a borrower requests the assistance and up to an additional six months of coven 19 forbearance for borrowers who request an extension of the initial forbearance plan this is super important because you do not get an automatic forbearance you have to reach out to your loan servicer and request one in addition if you want to have a forbearance that's longer than six months you also have to reach out to your loan servicer and request a six-month extension please please follow the rules here these extensions on evictions and foreclosures and an initial request to do a forbearance is all very timely because i noticed that black knight recently reported that the number of people exiting forbearance continues to slow with only 41 000 borrowers leaving their plans this week this is a very low amount of people exiting their forbearance because we have about 2.7 million homeowners who are still in forbearance right now you can see the slowdown on this graphic on black knight's website the number of active forbearances peaked in may of 2020 as you can see there with nearly 5 million homeowners in forbearance plans at that time that number has decreased significantly through october 2020 but the numbers have more or less flattened since then also according to black knight 24 of active forbearance plans are set to expire in march this equates to about 600 000 homeowners so it's gonna be very interesting to see what these homeowners do when they exit their mortgage loan forbearance certainly they have a lot of options if they do have a federally backed mortgage however some folks certainly are not going to be able to start paying their mortgages again if they still do not have a job when they exit their forbearance plan and if you're curious what homeowners have been doing when they exit their forbearance plan the mortgage bankers association has some really good data regarding this and if you know me i love great data so here it is so according to the mortgage bankers association they looked at forbearance exits from the time period from june 1st 2020 through january 24th 2021. so 28.6 represent borrowers who continue to make their monthly payments during their forbearance period this just means that they continue to make their mortgage payment even though they didn't have to 25.5 percent resulted in a loan deferral uh slash partial claim this basically means that they will pay off all their missed payments when they sell or refinance their mortgages 15.6 percent result in reinstatements in which past due amounts are paid back when exiting forbearance this basically means that fifteen percent paid off their mispayments in one lump sum payment even though they didn't have to uh 13.4 percent represent borrowers who did not make all their monthly payments and exit forbearance without a loss mitigation in place contact your loan servicer do not exit your for parents without contacting the company that you pay your mortgage to in addition 7.5 resulted in a loan modification or trial loan modification this basically means you modify the interest rate or term of your mortgage in order to reduce your mortgage payment so around seven half percent did a loan modification in addition seven and a half percent resulted in loans paid off through either a refinance or by selling their home the remaining 1.9 resulted in repayment plans short sales deeds and lose or other reasons so to briefly summarize that for you over 50 of the homeowners who exited the forbearance plan so far just continued to make their mortgage payments uh during their forbearance plan even though they were not required to if they have a federally backed mortgage in addition the other part of that 50 or 50 plus percent just did a loan deferral or a partial claim so it's gonna be very interesting to see what these 600 000 homeowners are going to do in march when their 12 month forbearance plan expires please subscribe if you haven't done so already and also hit the like button if you appreciate real estate market updates just like this one videos like these tend to take hours so i really appreciate your support also don't forget to get your two free stocks compliments of weeble when you deposit 100 on their platform i'll leave a link below for that and that's running for a limited time promotion also you can follow me on instagram i'm sacramento realtor hope you have an awesome day i look forward to seeing you on the next video [Music] [Music] you