If you are facing COVID-19-related financial hardships, many federally-backed and most non-federal mortgage lenders offer moratorium periods of temporary payment suspension or mortgage forbearance. If you have any type of decrease in income and you agree to this suspension of payment or mortgage forbearance, you will be allowed to miss payments temporarily. However, it is absolutely critical that you fully understand the terms of this relief plan.
Remember: mortgage forbearance is not the same as mortgage debt forgiveness. Whatever payments are deferred by your mortgage lender will still need to be paid at some point, whether it be in a lump sum at the end of the moratorium period or mortgage forbearance, larger installments, or added to the end of your mortgage. By agreement, there will be no additional fees or interest tacked onto your federally-owned mortgage, but it may still accrue regular interest. If your mortgage is not owned by the government, contact your mortgage loan servicer and find out what it’s moratorium or mortgage forbearance terms are.
Do not forget that Banks are not on your side even in an uncertain, frightening time like this. They extend a helping hand of payment suspension but it is an extremely short-term solution that, overall, still does not allow you to save any money. If your back is against the wall because of COVID-19-caused difficulty or any overwhelming debt that has been building since even before this crisis, we can help! Contact the Law Offices of Neil Crane, LLC to discuss your options of financial recovery and stability today.