Is mortgage forbearance the same as mortgage forgiveness? No, and here's why.
It's clear COVID-19 isn't going anywhere, and as we head further into the summer months, the nation is struggling with morale. However, I'm confident we will get through this together. My heart goes out to all of the families who have been affected either financially or physically. Today I want to discuss an all-important and timely topic: mortgage forbearance.
You've likely heard it mentioned on the news, as more and more homeowners explore options to ease their increasing financial burdens. How does it work? What are the pros and cons? Is it the best strategy for you? These are the questions I want to address for you. My goal is to empower you to make a more educated decision so that your efforts to seek relief don't end up harming you later.
Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch the full message or use these timestamps to skip to topics that interest you most:
0:45 - Defining a mortgage forbearance
2:00 - Don't jump on the bandwagon; if you're still able to make your payments, do so.
3:05 - With forbearance, your property taxes and insurance are not getting paid
4:30 - Your servicer will not report your forbearance to your credit bureau
5:10 - The right way to go about obtaining a mortgage forbearance
7:38 - Wrapping up today's topic
I can't stress how important it is to get all the details of your forbearance, should you decide to get one, in writing. If you have questions about what I discussed in this video, or anything else pertaining to lending amid this COVID-19 environment, please reach out to me via phone or email. I'm here to be a resource for you in these uncertain times. I look forward to hearing from you.