In these uncertain times, there is a lot of speculation about mortgages and what legislation might be passed to help those who are in need during this COVID-19 breakout.
With this speculation comes the poor advice to just skip payments on your mortgage, which is just that: poor advice. If you have income or other payment issues with your mortgage, start by
ONE: talk to your actual lender (or the servicer to whom you make payments). Each financial institution is different and has different rules for what is acceptable and they alone will be able to tell you what options you have.
Many banks are offering forebearance (which means you can skip paying your loan for up to three months). What many don’t understand about forebearance, however, is that on the fourth month, you’ll owe the entirety of the payments you haven’t yet paid, plus the late fees (and it will dent your credit).
Some mistakenly assume that the payments they miss will simply be tacked on to the end of their loan period. However, what actually happens is that in order to ‘tack payments on’ to the end of your loan, it’s necessary to REQUALIFY for your loan! So, if you lose your job, you might not be able to requalify for your existing loan.
There are options open to you during this time if you have a loss of income, but DO speak with your lender about these options and DO pay your mortgage if you can- even if it’s a partial payment!
If you have any questions, feel free to reach out!