Sign Indiana Banking Forbearance Agreement Simple

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so we've been talking in the last few weeks about the end of the forbearance period in march of 2021 the majority of the people that requested forbearances are going to start seeing that the end of the forbearance is here right now people are looking at the end of the forbearance and they're not sure what's going to happen to them when the end comes i've talked in other videos about the difference between federally backed and private lenders and how the cares act which is the law that protects people in forbearances with federally backed mortgages how that law protects those individuals however it seems that there's still a lot going on with the cares act and there might be some changes and some things that we need to talk about so you understand your rights and what you can do if your bank is not following the law my name is diego mendez i'm a bankruptcy loan modification foreclosure lawyer here in miami florida as i explained before i was around in 2008 during the last crash and i saw a lot of the same problems that people are facing now repeated again now we need to talk about how you can come out of this situation with your home with your financial situation intact as with everything in life when things change there's always some point of confusion as to what the future will hold that's what we're facing right now in a few weeks people are going to start getting their first bills from the forbearance period ending in march of 2021 the first wave of forbearance ends will start and then the next wave will go as people requested them throughout the year of 2021. there's a lot of confusion right now as to what's going to happen in march of this year when a lot of people are going to start getting their first bills after the forbearance period ends now we've talked a lot about the differences between federally backed mortgages and private lender mortgages i'm not going to talk about private lender in this video what i'm going to talk about and what i'm going to focus on are the cares act government-backed mortgages if you have a mortgage that's federally backed which is an fha fannie mae freddie mac va or usda these banks cannot ask you for a lump sum payment and they cannot ask you for things that other banks which are not under the cares act can however there is a big problem with the cares act and something that we're starting to see especially with the smaller banks as good intention as a cares act is in which i believe it is a good law there is no private cause of action in this law now this is a little lawyer speak so just give me two seconds to explain what this means this means that you cannot use the cares act as a sword only as a shield that means that you cannot sue a bank that does not follow the rules of the cares act and try to get them to do what you want this is a very big detriment especially with smaller banks that tend to sometimes not follow the rules the bigger banks have so far followed the rules and have done the right thing and followed the guidelines of the cares act however there is some anecdotal evidence out there there's some people telling different people about this that the cares act is not being followed especially by smaller lenders the biggest problem with the cares act is that it does not specifically tell the banks how to handle the escrow as of now the majority of the banks have been paying the escrow for the people in forbearance however that is not a requirement of the law this was specifically taken out of the law which means that it's completely voluntary and as we know what happened in 2008 a lot of banks decided that things were that were voluntary were not in their best interest therefore they stopped doing it there is some anecdotal evidence out there of banks not following the rules of the cares act this is something that is very very troubling because this law was designed to protect struggling homeowners and a lot of times people stop paying their mortgages thinking that they're going to be getting help but then actually they were putting themselves in a very bad position this same thing happened in 2008 when the banks told you to stop paying your homes to apply for a loan modification a lot of people lost their homes because they followed the directions of the bank and did what the bank told them and then they got themselves in a hole that they were not able to get out of forbearances are notorious for this type of thing a lot of times where people are put into forbearances without even them asking for it and when it's time to come out of it the bank asks for a lump sum that cares that specifically prohibits this if your bank is federally backed they cannot ask you for a lump sum however the cares act does not tell the bank what they're supposed to do with your escrow so in theory while they can't ask you for a lump sum they can ask you to pay back the escrow in a very short period of time the escrow can sometimes be sixty percent fifty percent of your normal payment so even though you're saving money by not paying the principal on interest the escrow portion could add up to a significant amount of money especially if the bank's asking for that in a lump sum or if they're asking you to pay it back in a very short period of time it's very very important that you pay attention to what the bank is doing with you at the end of the forbearance when the end of the forbearance comes this is when you need to have all of your alerts on and you need to be looking and reading everything the bank sends you so you understand what's happening now not to scare anybody but there is a way that you can limit the tension and limit the confusion of your situation so that you can get out of this situation and get on with your life the number one thing that you need to do with a bank is communicate do not ignore the bank nobody wants to call their banker nobody wants to talk to somebody that they don't know over the phone about their private financial situation that is one of the worst phone calls that you can make i understand i deal with this every single day with my clients it's a psychological thing a lot of people do not like to talk to their banks i get it however if you don't talk to the bank the bank's gonna do whatever they want with you so you need to make a phone call you need to be nice but firm you need to make sure that if your house is covered by the cares act that the bank is following the rules so when you're coming out of the forbearance you need to call them communicate and then get everything in writing when ronald reagan was negotiating with the soviet union at the end of the cold war he said we can trust that we must verify you need to do the same exact thing trust but verify so that you can come out of the situation without a huge bill at the end and a huge headache that might lead to the end of you owning your house so it's very important that you communicate and then you get everything in writing and when you get the thing that you ask for in writing read it look at it and if there's a problem with what they sent you immediately call them do not wait until that problem festers into a situation where you're not paying back what you're supposed to pay back and the bank is charging you late fees and putting you in a position where you cannot pay your your mortgage anymore and you lose your home nobody wants to spend an afternoon on the phone talking to some banker about your mortgage however spending the two hours or three hours that it takes to do that and the stress it takes to do that can possibly save your home in the future i cannot tell you how many people i dealt with in 2008 2009 2010 that could have been saved with a simple phone call at the very beginning of their problem with their mortgage that festered into a situation where foreclosure eventually happened and they lost their home do not let that happen to you make sure that you communicate with your bank make sure that you get everything in writing trust but verify and i promise you that if you do these things it's not going to work in every situation there will be people who will lose their homes because of the forbearance problem i guarantee it because there are too many people involved and there's too many millions of people with different situations every situation is different and a lot of times there's really no way to save a house however many times you can save your home by simply doing what you're supposed to do and keeping yourself informed and not giving up my name is diego mendez like i explained i've been an attorney in the miami area since 2008 where i started representing individuals who were in foreclosure in a bankruptcy situation and also required loan modifications i've been helping people both in english and spanish for many many years here in the miami area and i hope that my videos are helping you understand what you can do in this forbearance period to come out with your home and your sanity intact please subscribe to my channel and like my video so i keep making these videos and i can assure you that there will be new things to talk about every single week every monday i plan to do a video that will address the situation that's happening in the united states with forbearances loan modifications short sales and other things that related to real estate and your personal finances thank you very much