With all the changes going on with the Corona and Covid 19 many have been effected and took the Mortgage Forbearance that was offered to them, and not understanding the ramifications that are involved.
The 1st round came in March
The second update came the end of April
Great news about the mortgage forbearance by the FHFA the Federal Housing Finance Agency. They are the conventional Fannie and Freddie mortgages.
Forbearance is basically deferring payments.
The BIG change is how you get out of the forbearance that’s so many found them self stuck in unintentionally.
So that you can get a new mortgage or refinance a current mortgage you have.
The 3 changes are
- If you went into forbearance and didn’t miss any payment which is about 40% of the people
you can end it right away and get a new mortgage or refinance to lower rates.
- If you missed a payment you need to end or cure it and make 3 on time payments,
then you can get a new mortgage. You wait only 3 months instead of 12.
- 3rd way to get out.
The repayment of the forbearance amount can be stretched now to 36 months instead of the 12 months it was before.
If someone is still having a hard time repaying the forbearance amount modification is available but difficult to get.
These changes are exciting and will open up many more doors to new home buyers and homeowners that want to refinance and enjoy the low rates we are expecting.
Before you could not do it. You had to sit and wait on the sidelines for 12 months
In summary how you get out of a forbearance
1.Pay the amount you owe in a lump sum
2.Stretch the amount that you owe over 12-36 months
Just as an FYI the Mortgage Forbearance will be reported on your credit report and could effect what you can or cannot do.
Homebuyers and homeowners please share this information with your friend’s coworkers and family. Save them from a decision that could potentially harm them financially.
Let Racheli’s Home Team guide you and those you care about, on the correct Mortgage Process
Real Estate agents you just got a lot more potential home buyers who could get into home ownership.
Racheli Rafael a mortgage advisor in Sunny South Florida with Fairway
I am here for you
let us know how we can help you through the forbearance maze, and get you into home ownership.
Need more clarification give us a call 954-800-0330