Sign New Hampshire Banking Forbearance Agreement Later

Industry sign banking new hampshire forbearance agreement later

under the cares act millions of homeowners have received forbearance due to the coronavirus pandemic forbearance lets you hit pause on your mortgage payments while you're dealing with financial hardship but how do you prepare for when your forbearance period ends the first thing to know is forbearance isn't forgiveness you will eventually have to pay back the mortgage payments that were paused or reduced before your forbearance period is over your mortgage servicer should reach out to you and let you know what your options are going forward but if they haven't contacted you in 30 days before your forbearance period ends you should contact them yourself you need to learn two things exactly when your forbearance period ends and what your repayment options are now if you still need help or the pandemic is still causing you financial hardship you may be able to extend your forbearance if you got forbearance under the cares act you have the right to a 180-day forbearance and the right to an additional 180-day extension and there's no harm in asking for the help you need under the cares act you do not need to provide documentation to get a forbearance or to prove you need an extension the next thing to learn is what your repayment options are because don't forget eventually you will have to pay back any money you've paused there are a number of options for repaying forbearance but which options are available to you may depend on who owns or backs your mortgage your mortgage servicer and your particular situation there's no one size fits all for options for instance if you have a federally backed mortgage which is a loan from fannie mae freddie mac fha va or usda your servicer cannot require you to pay back your forbearance as a lump sum many servicers for non-federally backed mortgages also do not require lump sum repayments but some may so if you only hear about a lump sum repayment ask about other options there are four common ways to repay the money due from your forbearance the first option is sometimes called a repayment plan this can be a good option if you can make your regular mortgage payment plus some extra it adds the amount unpaid during the forbearance to your regular monthly payments over a certain period of time let's say your servicer offers you a forbearance where you can pause your mortgage payments for three months and your regular mortgage payment is one thousand dollars each month so the payments you missed during your forbearance add up to three thousand dollars suppose your servicer offers you one year to make up the three thousand dollars that was unpaid due to the forbearance doing the math that comes to two hundred and fifty dollars added to your regular mortgage payment each month for one year so your total mortgage payment would be one thousand two hundred and fifty dollars until you make up the skipped payments after you've repaid the payments you skipped your monthly payments would return to the normal one thousand dollars another option is sometimes called payment deferral that's when you wait to make up your unpaid forbearance amounts until the end of the term of your loan or when you sell or refinance your home this option can be useful if you can keep making your regular payment but can't pay any extra if you receive a payment deferral you don't need to make up the payments you are allowed to pause or reduce during forbearance until the end of your loan at the end of the loan your servicer may require you to repay the skipped payments all at once from the proceeds of the sale or through refinance let's say you sell your house in 10 years in that case you would pay off the forbearance then another option is sometimes called a loan modification that's when you work with your servicer to change the terms of your loan to accommodate the missed forbearance payments a modification might be right for you if you can no longer afford your regular mortgage payment because of a permanent change in your situation such as long-term job loss a loan modification would be for example if the servicer adds the missed payments to your entire loan balance then recalculates your monthly payment adjusting your loan term to bring your monthly payments to an affordable level so instead of having 20 years until your mortgage is paid off you might have 22 years to pay off your new loan balance as you can see your monthly payments may be lower but it could take longer to pay off your loan and you might have to pay more interest over the life of your loan the final typical option is the lump sum payment it's just how it sounds as soon as your forbearance period ends you repay all of your missed payments in one payment so let's say your servicer offers you forbearance to pause your mortgage payment for three months with a lump sum repayment agreement in month 4 you pay your normal mortgage payment plus the payments you paused so if your mortgage payment is one thousand dollars a month in month four when your forbearance ends you will pay four thousand dollars one thousand dollars for your normal monthly payment and three thousand dollars to repay the payments you skipped after that your monthly payment will go back to the normal amount if you have the money to make the lump sum payment this can be a simple option for getting back on track however many borrowers may not be able to afford the higher payment if that's the case for you ask your servicer about other options remember if you have a federally backed mortgage you will not be required to pay your forbearance payments back in the lump sum those are a lot of options but not all may be available to you it's important to work with your servicer to understand the process consider your next steps and understand the best option for your circumstance for help talking to your mortgage servicer or understanding your options or if you are worried about foreclosure contact a hud approved housing counseling agency in your area for more in-depth information on mortgage relief options visit consumerfinance.gov housing