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Here’s What You Need to Know About Coronavirus Mortgage Relief
The Coronavirus Has Affected Us All Financially
Get Coronavirus mortgage relief, if needed. The novel coronavirus has drastically flipped the working-class upside down. Those who steadily relied on a regular paycheck found themselves suddenly without it. Many have experienced unforgettable financial setbacks, from being laid off and trying to file for an unemployment check to being let go.
Not being able to afford your mortgage can be a scary experience. You don’t want to find your family out on the street or moving in with family just to survive. When the home loan lenders started to offer mortgage assistance, it seemed like a godsend for many. However, before you decide to undergo mortgage relief, there are some key things you need to know about it.
Many Companies Offer Between Three And Six Months Of Coronavirus Mortgage Relief
Most home loan lenders are offering relief programs that range from three to six months. Initially, most lenders started offering three months of forbearance on their loans. This translates to three months of not having to pay on your home loan.
After this three month period, many lenders offered an additional three months of forbearance to help clients who were still having financial difficulties. This translated to a total period of six months of forbearance, where there was no required payment for customers.
It’s important to note that many customers are still capable of making payments on their home loans during this time. However, they don’t have to.
An In-Depth Look At Forbearance
Forbearance may be a new financial concept for many borrowers. It’s defined as a temporary form of suspending payments on a loan. This type of suspension is typically offered on many different types of loans, including student loans. However, obtaining a forbearance usually required negotiation terms and conditions with your lender.
The coronavirus changed all this in respect to home loan forbearance. The CARES Act changed some of the rules surrounding forbearance. Homeowners don’t have to prove their financial hardship. They are not charged a fee or penalty for enacting a forbearance on their loan, and they’re to be given a period of at least 90-days upon request.
Understanding Repayment Options
While it can be easy to view forbearance options as a much-needed relief from the stresses of your current finances, repayment is something you should consider from the start. Forbearance doesn’t eliminate your monthly payments. You still have to pay for those payments at a later date.
How these payments are remedied in the future will highly depend on what you set up with your home loan lender. Some may require a lumpsum payment for all the months that your loan was on forbearance as soon as the forbearance period runs out. This means that you could potentially owe three to six months’ worth of loan payments at the end of your forbearance period.
Other lenders may opt for extending your home loan for three to six months, depending on the length of your forbearance. Before you agree to put your loan into a state of forbearance, it’s a good idea to talk with your home loan lender to discuss your options for repaying postponed payments.
Call Flash Realty Solutions and Know Your Options
Flash Realty Solutions provides free, no-obligation quotes for all types of homes. If you need to sell your home quickly, we’re here to help judgment-free.