My Mortgage is late! Now What?

Should I request mortgage forbearance?
If your income has not been affected by the pandemic and you are in good standing mortgage wise, it may be a good idea to keep paying. This is especially the case if you are in a circumstance where you would have to catch the mortgage up in one lump sum once the forbearance is over. If you have an option to tack an interest free loan on the end of your mortgage, the answer may not be as cut and dry. If you are a disciplined saver, you could use this opportunity to build savings or pay off smaller debts with higher interest rates.

What happens at the end of the forbearance?

Once the forbearance is in place, the servicers are required to evaluate an option to help the borrower get back on track after the forbearance period is done. The options include:
· A one-time payment to catch up the mortgage
· Spreading the amount of the deferred payments over the life of the loan
· Adding the deferred payments in the form of a non-interest-bearing loan on to the back of the existing mortgage term

How do I know if my mortgage qualifies?

In order to determine if your mortgage is backed by a government agency, start with the FannieMae or FreddieMac look up tool since almost half of all mortgages are owned by them. Additional mortgage backing agencies include HUD, USDA and VA. Once you determine whether your mortgage qualifies as government owned, contact your loan servicer to review your options.

What if my mortgage is not owned by the government?
Many private lenders have sought to offer relief to those dealing with financial hardships. The fact that most mortgage loans are government owned puts additional pressure on private mortgage backers to offer similar options. To find out more about your options, you will need to do some research.

Where can I get information if my credit is affected?
Credit services of America can assist you in discovering the right strategy and how to best manage your current debt and credit needs. When people are faced with these issues Credit Services of America, is well equipped to help you get those tough questions answered with a Taylor Made plan to get you and your finance’s back on your feet and re-establish yourself back on sold financial ground.

A Goal without a Plan is just a Wish. Give us a call TODAY at 844-FIX-URCR or click on the following link to schedule your FREE consultation and create your personalize plan to achieve your credit and debt GOALS!