In the COVID-19 era, many homeowners found themselves struggling to pay their monthly mortgage payments and other bills. When homeowners fail to pay their mortgages, they become what is known as a delinquent borrower and their loan becomes non-performing.

If you find yourself struggling to make your payments, talk to your lender about a mortgage forbearance agreement.

COVID-19Ease The Burden During Financial Hardship

Mortgage forbearance agreements are designed to ease the burden of your mortgage during times of financial hardship. This agreement is one between you and your lender that helps you catch up on your payments, as well as defers penalties.

Because of this agreement, your lender agrees not to foreclose on your home.

Mortgage Forbearance Agreements Are Temporary

Mortgage forbearance agreements are temporary, typically 12 months. During this time, there are no penalties or late fees. Your lender will also suspend their reports to credit unions of past-due payments.

When this forbearance period, you must resume mortgage payments. If you need to extend the forbearance, your lender may agree to an extension.

Mortgage Forbearance Is Not Debt Forgiveness

It is of the utmost importance to remember that mortgage forbearance is not debt forgiveness. You still need to pay your mortgage loan after the deference period provided to you by your lender has expired.

Provide Your Lender With All Appropriate Documents

Before your lender will agree to a mortgage forbearance agreement, you must provide them with the documents proving financial hardship:

Your lender will let you know what documents are needed. Don’t be afraid to ask questions, especially if you don’t understand something! Your lender will be more than happy to answer.

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Contact Eric Merchant At 314.541.1218