Mortgage Forbearances are coming to an end.
Is your mortgage forbearance ending? Millions of home owners opted to take a few months off their mortgage during the shutdowns, but now it's time to start making the payments again, and in some cases pay it all back!
YOUR OPTIONS FOR MOVING ON AFTER COVID-19 FORBEARANCE:
Pay the back due amount and resume normal payments.
The easiest way to move forward is to simply pay back the missed payments and resume making normal payments. In some cases your lender can even tack all the missed payments onto the back of the loan.
Request an extension.
Most lenders are currently allowing extensions to their original forbearance, at least through mid 2021. If you just need more time to get back on track, this may be an option.
Modify your mortgage.
If your situation has changed for the long term (new job, income reduction, etc), and you wish to remain in the home, but cannot pay back the forbearance and/or resume regular mortgage payments, you can request a loan modification. A loan modification is a permanent change to the terms of your mortgage that may make it more affordable
Sell the home.
If you are unable to make any payments going forward and wish to avoid foreclosure, selling may be your best option. Its a hot sellers market, and most folks will have at least some equity to be able to sell easily now.
Consider a short sale.
If you'd like to sell, but lack the equity to do so, a short sale may be an option for you to sell the home and have the lender forgive the difference.
Last Updated on February 12, 2024 by Minna Reid
