Struggling to make your Mortgage Payment?

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Has your income been affected by COVID-19 and are you struggling to make a mortgage payment? If so, you can contact the current servicer of your mortgage to request forbearance of your mortgage payments and receive mortgage relief.

What is mortgage forbearance and what will happen to me if I can’t make my payment?

First of all hear this, NO ONE WANTS YOU TO LOSE YOUR HOME, not lenders, and not the US government. These loan programs have been put in place to help struggling homeowners maintain homeownership and keep families in their homes. Your mortgage servicer will work with you to delay making your mortgage payments while you are struggling, and will work with you to establish a repayment plan. This may result in a balloon payment, or could possibly be added to the back end of your current mortgage term.

If you are able to make your mortgage payment, YOU SHOULD CONTINUE DO SO.

Pull from your savings, take a loan from your 401k, reduce your monthly overhead, or by any means possible, stay current with your mortgage payments.

There can be delayed or unintended consequences with filing for mortgage forbearance.

If you file for forbearance, you cannot refinance your mortgage for a 12-month period AFTER bringing your account current. This may mean that you temporarily do not have access to the equity in your home. Additionally, interest rates are anticipated to remain at historically low levels and you may miss the boat as low interest rates sail by.

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There will be no negative impact directly to your credit report as a result of filing.

However, during the forbearance period, there will be a lack of reporting or a blank for monthly mortgage payments. As long as you resume making payments after the forbearance period is completed, you should not have a long lasting negative impact. The CARES Act provides guidance for mortgage companies and attempts to provide relief to homeowners in Ventura County and Nationwide. Make certain to read and understand your contract. If you have any questions or need further clarification as to your options, contact your local mortgage professional, me!

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