FORBEARANCE is NOT
what you might think!
Here’s the "Mortgage forbearance Math"
Mom and Dad have a mortgage.
It's currently $1,500 per month.
Dad gets laid off, calls the Servicing Company for the Lender and asks for forbearance because he heard about it from a neighbor.
FYI- The Servicing Company is who you make your monthly mortgage payments to. They are hired by your Mortgage Company/The Investor to collect on the mortgage.
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 Servicing Company says,
"That will be $9,000 + $1,500, which is now due". ($10,500)
Dad almost passes out and says, “WHY??"
Servicing Company: "That's the 6 months of forbearance plus the current month.”
Dad: "I can’t do that, can we work something out?"
Servicing Company: "Sure, we will spread out the $9,000 over 12 months."
Dad: "Fantastic....sound good. What will that look like?"
Servicing Company: That will be $2250 a month for the next 12 months."
Dad: " Oh my World... I can't afford that"
Servicing Company: "Sorry....."
Dad: "Can I refinance?"
Servicing Campany: "No because the loan went into forbearance."
Dad: "What can I do?"
In a nutshell, this is forbearance, folks.
Forbearance is Not Forgiveness. Please understand the seriousness of this, and if you still have questions, you know we are always here for you.
We will help guide you in the proper direction. We know these are very hard times, and understand there is panic in uncertainty. Hang in there. This will pass.
Julia Martin, Broker
Elite Real Estate and Financial
CA DRE Lic. #00976550
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