Sign Oregon Banking Forbearance Agreement Now

Industry sign banking oregon forbearance agreement now

hi Bill Gaylord we wanted to get out some information regards to how the new stimulus package impacts mortgages and in specific how it might actually impact you and your mortgage if you're having some type of a hardship so I wanted to go through and read a little bit about the Act and how it impacts mortgage so there's mortgage relief for homeowners it requires the servicers meaning who you make your payment to a federally backed mortgages to postpone mortgage payments at the request of the borrower provided the borrower affirms financial hardship due to the Cova de 19 the postponement must be granted for up to a hundred and eighty days and can be extended for an additional hundred eighty days at the request of the borrower I'm going to talk a little bit more about this because there's a couple of ways to do that there's what's called forbearance and deferment and I'm gonna get into that a little bit later the second one that really is part of the mortgage of the Act is foreclosure moratorium it prevents the servicer who you make your payment to of a federally backed mortgage loan to initiate any foreclosure process for the least 60 days beginning on march 18 2020 so they cannot take any action whatsoever from March 18th two months or 60 days from now so be April May 18th so we cannot initiate any kind of foreclosure process the third item on here is relevant to people who own investment properties and this is eviction relief for renters so it says for 120 days after the cares act date of enactment landlords with mortgages backed by the US Department of Housing and Urban Development HUD Fannie Mae Freddie Mac and other federal entities cannot pursue eviction for their tenants landlords can can't charge any fees or penalties related to non-payment of rent so this obviously for the renters who may be struggling with this this is too them as well certainly it impacts the button are the investors who owned the homes so you can't do anything for 120 days now I want to get back into the forbearance you're gonna hear a term forbearance and you're also gonna hear the term deferment and those are two terms that I really want to discuss forbearance is basically where you will call your servicer direct who you make your mortgage payment and you would call them and say I would like to see if I can have my loan paused for a period of time until because of the cove in nineteen I'm it has impacted me I become unemployed however it has impacted you you can call your servicer there's no documentation that you need to provide that to them to show that you've been impacted by it you have to just tell them what it is then they will send you what's called an attestation that you attest that yes you want to go into forbearance until the time is such that you can actually start making payments now forbearance is very different than deferment forbearance is basically stopping your mortgage payment for a period of time and when that period of time ends then you are responsible for making up all those payments that you have paused so let's say for example you have a mortgage payment of $2000 a month and you basically go into forbearance for a hundred and eighty days that's six payments six times 2,000 at the end of a hundred and eighty days you would have to come up with twelve thousand dollars to get your payment back going again you have the ability to extend it for another hundred and eighty days which would essentially be twelve months so that would be twenty four thousand dollars that you would have to come up with in a year to get your mortgage current again and it's really difficult because a lot of the mortgage companies would love to help out and just say hey we can you know put it at the end of the loan and we'll talk about a little bit about that but there's conch facts that are involved in all these mortgage companies when they sell them to Freddie Mac or Fannie Mae or the VA FHA they have contracts that they have to adhere to so at the end of that time period they have to pay these entities the money so forbearance while it sounds really interesting and really good for you because you can like pause your payment for a little bit it can be very difficult when you want to really restart it because you may be losing income now six months from now you may have just started your payment back up you know and then you're gonna have to come up with a lot of money some entities some mortgage companies are doing what's called deferment and this is it's just strictly by chance that they can do deferment they are not beholden by some contracts so you may be with a company that will only allow forbearance or you may be with a company that will allow deferment deferment is different deferment is one of those where you will actually defer the payment and it's added to the end of your loan so for example if you have a 360 month loan or 30 year mortgage and you are now one year into it you would have you know 29 years left if you did forbearance for six months you would have 29 and a half years left it basically extends the loan and adds that payment down to the added on to your loan so deferment is different it's added to the end of the loan forbearance is you stop but you have to make it up when the forbearance period is over so be very careful with forbearance understand what those options are and if you can make the payment clearly try and make the payment it you know if you can't then go into forbearance understand if you get to that 180 days and you are in an issue where you cannot come up with the money to get your loan current then you will be able to probably work with your mortgage company to create a payment plan where you may be able to add to your mortgage payment and pay it off over a period of time so the real key is being open honest with your mortgage company with your lender and just talk to them about your situation and I know that they're going to do everything they can to help you get through this tough time so hope that helps we're here to answer any questions we possibly can will point you in the right direction and we'll give you the information for your situation so call me bill Gaylord we've got our team San Diego Las Vegas Phoenix we're happy to help you in any way possible DM call and we hope you're staying safe and we'll talk soon Gaylord out you