Sign Illinois Banking Forbearance Agreement Now

Industry sign banking hawaii forbearance agreement now

the purpose of this video is to answer a question i've been getting uh commonly with all of these coveted forbearance plans going on and that question is what's happening to my credit score and the answer is it's different depending on who your lender is and things right now are being applied kind of inconsistently so what's important to understand is when you make your mortgage payment every month right you have a regular current payment history and every month the people that you owe money to like your mortgage lender reports that you have made an on-time payment okay if you miss a mortgage payment and you don't make it up within your grace period the lender will then start reporting to the credit reporting agencies that you are delinquent or in default or have missed a payment once you start having these missed payments being reported that will impact your credit score it will show up and it will drop your credit score um and so if you're just somebody who was paying and then you stopped paying you're in default at that point and you're you are receiving regular monthly reporting from your mortgage lender to the credit companies and that's why your credit score is dropping now if you are somebody who has undertaken one of these covid forbearance plans your forbearance plan may or may not cause you to go into delinquent reporting on your credit report most of the homeowners that i'm seeing that i've actually been able to like explore with the lender on the phone they're not being reported as delinquent on payments the forbearance plan is in place and it's kind of protecting them from that delinquent reporting i have come across one lender that has actually reported some homeowners delinquent um and we're kind of currently working to see what we can do to get that cleaned up a forbearance plan is an agreement right that you make with your lender where the lender says you don't have to pay me for a certain amount of time and so they should not technically be reporting that as delinquent payments because you're in agreement now what's interesting to understand is there's going to be a transition period so at some point your covert forbearance is going to expire and then you're going to apply for either a loan modification or a deferment or a partial claim to kind of get back current if you have questions about that transitioning process there's tons of videos on this page about that but you're going to go from being on your cover for a variance plan to applying for something else if there is like a couple months window in there where you don't have a valid forbearance in place anymore and your loan modification or whatever you're applying for is being reviewed you technically could start to be reported as delinquent on the payments at that point and there's nothing really you can do about that you would technically be in default it seems that lenders are being a little bit more lenient with all this covid stuff and they're not jumping to report as quickly as possible but if you're super concerned that you're going to have this lag time in between your coveted forbearance and your loan modification and that you don't want to be delinquently reported what you should do is try to be as conscious as possible as to when you're going to actually apply for your loan modification so let's say you're 45 days away from knowing that a your covet forbearance plan is going to expire and your income has recovered and you're ready to apply for let's say a loan modification you should start that application process 45 days ahead of when your coveted forbearance plan expires the perfect situation would be to be able to transition off of your covert forbearance plan and into your new plan while creating very little time delay in between now unfortunately you can't really control a ton of that the the review times are kind of on the lender's review time right now there are some things you can do to speed it up and i talk about them in other videos so watch my loan modification videos but if you're super concerned about getting reported as delinquent on your payments you should apply to transition earlier rather than later if you know you'll be able to make your modified payments even if you plan on staying in your covert forbearance try to hit that 45 day time frame where you apply for the transition plan before your covet forbearance expires and that should help with some of the delinquent reporting good luck