Mortgage Payment Forbearance vs Forgiveness: Doylestown, Bucks County PA Real Estate Advice!
Tuesday Tip! A lot of people may be in a tough spot financially right now and may have considered contacting their mortgage companies to delay mortgage payments… LISTEN TO THIS FIRST! One of our trusted lenders, Bill Rookstool with The AMG Team: Mortgage Lenders explains why you shouldn’t fall into the ‘trap of Forbearance.’ Refinancing your mortgage may be a BETTER option! Here is Bill’s video explaining Forbearance: CLICK HERE!
Here is a really great example from Approved Mortgage:
Thinking of doing a forbearance? First- let’s do some forbearance math!
Mom and Dad have a mortgage.
It’s currently $1,500 per month.
Dad gets laid off, calls the servicer, and asks for forbearance.
In one phone call, he gets 6 months “off” from paying.
Seven months later, Dad is finally back to work, and hasn’t been able to save any money during the forbearance.
Forbearance is lifted and servicer says,
“That will be $9,000 + $1,500, which is now due”. ($10,500)
Dad almost passes out and says, “WHY??”
Servicer: “That’s the 6 months of forbearance plus the current month.”
Dad: “I can’t do that, can we work something out?”
Servicer: “Sure, we will spread out the $9,000 over 12 months.”
Dad: “Phew….ok, good. What will that look like?”
Servicer: That will be $2250 a month for the next 12 months.”
Dad: ” OMG!!! I can’t afford that.”
Dad: “Can I refinance?”
Servicer: “No because the loan went into forebearance.”
Dad: “What can I do?”
In a nutshell, this is forbearance. Forbearance is NOT forgiveness! We need to keep pushing this message since we are getting so many questions on the subject. If you have ANY questions, you know our team is always here for you! You have options! #TheAmgTeam #Forbearance
Approved Mortgage Group
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