Sign North Carolina Banking Forbearance Agreement Free

Industry sign banking north carolina forbearance agreement free

did you know that the student loan forbearance that you're under under the care exact could be the thing stopping you from getting a mortgage or refinancing your current house let's talk about it more than eighty percent of the population has some form of student loan debt me included you see those degrees on the wall they didn't come cheap and so the carries that created some way to have a forbearance a break from paying little student loan payments comment below if you have student loan debt federal student loans Fannie Mae I don't know if I remove the other services but comment below you also have student loans that and you were I guess grateful that the cares that gave you a six-month break from paying it so as you may know by now the corona virus pandemic has wreaked havoc on the economy and Congress came up with the cares Act as a way to stimulate the economy and it had a lot of provisions to it but the one that we're talking about today is the student loan forbearance provision which basically gave student loan Federal's to the home student loan borrowers a six-month break from paying their student loan payments and everybody's like yeah you don't have to pay my student loan for six months it gave you a break from student loan payments interest and from collections right so it seems like it was a good thing for our student loan borrowers who don't have to pay for six months but it turns out that Congress giveth in the bank taketh away some of these student loan borrowers are now going to the banks and applying for mortgages or applying for refinancing because the interest rates for these are very low right now and so it's like okay this is the best time to do it let's apply but what they're encountering right now when they go to the banks is denied you do not qualify your student loan forbearance have made you ineligible because of that's income ratio that they calculated during underwriting and so student loan Barrett borrowers are saying like wait what the heck like I gotta forbearance and now you're holding it against me so let me back up and explain kind of what's happening at the bank's when these student loan borrowers apply so when you apply for a mortgage they decide okay this is what you can afford based on how much debt you have out there and what income you make and so some of these student loan borrowers work weren't on a standard repayment plan where basically is a higher amount probably than some of their repayment plans they were on an income based repayment plan which is a reduced payment and so when they apply for these mortgages it shows that they have these student loan debts and that they're in forbearance and so there's seemingly no payment so what big underwriters have to do they know that this forbearance will expire so what they do is calculate what they believe the monthly payment will be for that student loan and what they do is take a standard repayment monthly payment amount and they say hey we're gonna say that your payments will be normally a thousand dollars if it wasn't in forbearance the problem with this is that income based repayment plan probably would have had them paying five hundred dollars and nine thousand and so it looks like they have more debt than they do and then the underwriters as a bank are saying hey doesn't look like you can really afford this payment but if you're like me you don't take no for an answer on the first try so what student loan borrowers that fighting they have to do is saying hey let me show you my statements before the forbearance happened that shows this is what my actual monthly payment was before it shows zero right now and they also show like that several months of it so you have to prove sometimes like no this is what I would have been paying and this is what I would pay in the future and that way the underwriters can say okay your debt to income ratio will be this amount and they're not basing it on this sauce okay zero dollars or this standard payment amount and so I would say if you get a no go back give them some paperwork find out how to calculate what your payments would be and say no no I can afford this try again another obstacle that some student loan borrowers are hitting are that their student loan services are reporting them to the credit bureau as behind now the kids expose to say hey no they don't have any payment students for these student loan borrowers they have no interest in no collections so in essence the student loan servicers are not supposed to be reporting the student loan borrowers as the Linkwood but I guess sometimes the left hand doesn't know what the right hand is doing and they're still reporting that people as delinquent which gives them negative or derogatory mark on their credit report which then in turn shows the bank that they don't qualify and so if you find out that to be the case they're finding that a lot of people with different services I think Nabi ours is one of them that weren't doing their what they were supposed to do call them up and say hey you need to fix this because this can affect your ability to get a mortgage or to refinance your current words Congress is talking about having a second stimulus package to stimulate the economy and student loan forgiveness or scuse me forgiveness or Core Barretts are being talked about and so we we won't know for sure what happened so they actually passed a bill but you want to make sure that you're ahead of the game in regards to making sure that these provisions don't affect you negatively you want to basically be it a benefit from the forbearance you want to benefit from these lower interest rates that are out there for student tuning for mortgages or for refinancing so make sure you say it's on top of your finances make sure that people are doing they're supposed to at the banks at the student loan servicers and just figure out what you can do I'm passionate about consumer protection laws the big companies are not going to take advantage of them working average people and I try to find ways to fight the system when I see that people are being negatively impacted by a comment below you've experienced some negative problems with the student loan servicers or banks when you feel like hey this wasn't right and tell other people which you might have done because somebody else might be facing the same problem and your solution to the problem could also help someone else