IF YOU ARE CONSIDERING A FORBEARANCE FROM YOUR LENDER READ THIS FIRST!

I just watched a webinar hosted by a lender and one of the topics he covered was the forbearance issue. First of all, if you can't make your mortgage payment then absolutely reach out to your lender. If you are thinking it would be great to have the extra money that would normally go to the mortgage please consider these issues before you make that decision.

What exactly is a forbearance? It is an agreement between you and your lender that allows you to not make your required mortgage payment at this time. It does not make that payment go away! Some lenders are doing a 30, 60, or 90 day forbearance. That means at the end of the term, the mortgage payments during that time can become due. For instance, if you have a 90 day forbearance, in 3 months you may have to pay 3 mortgage payments at once. This is in addition to your regular monthly payment. Another option lenders have is to offer forbearance that is added to the back-end of the loan. Make sure you are clear on the terms and expectations of your forbearance.

As always, make sure you completely understand what your obligations are to prevent an even bigger crisis down the road! Stay safe.