September 2021 marks the end of relief for the first wave of people who applied for the Government’s coronavirus mortgage relief program.
As forbearance programs for mortgages begin to end across the country, many homeowners are reviewing their options in repaying the forbearance amount.
If you are one of the 7.25 million homeowners who choose a forbearance, here are your options upon completion of your forbearance plan.
Reinstatement: This means you pay the total forbearance amount all at once. You do NOT need to take this option unless you are financially able to make such a payment.
Repayment Plan: You can discuss with your servicing company to work out a repayment plan (up-to 12 months) to bring additional monthly payments along with the regular monthly mortgage payments to catch up the forbearance amount.
Payment Deferral: This option allows you to bring your mortgage current by delaying repayment of forbearance amounts without changing the terms of the mortgage. The forbearance amount will be added to the outstanding balance which will be due and payable at the maturity of the mortgage loan or earlier if you sell, transfer, or refinance the property.
Loan Modification: This option will permanently changes the terms of the original loan. It is intended to make the monthly payment more manageable which will result in a lower monthly payment.
Refinance: If you have resolved the forbearance plan, it is possible to refinance your loan. Don’t hesitate to contact a broker to help with the process.
Give me a call today at 925-216-3618 and explore your options.
