If you have a federally backed mortgage (FHA, VA, USDA or a mortgage that has been purchased or guaranteed by Fannie Mae or Freddie Mac), you have a right to call your lender and request that your payments be paused for up to 180 days. If you don’t know if your mortgage qualifies, call your lender today – nearly 70% of all mortgages are federally backed. If you take advantage of this opportunity, there will be NO fees, NO penalties and NO extra interest added to your loan.
Putting your payments on hold is also known as “forbearance”. What is forbearance? Forbearance is not the forgiveness of the payments that are due. Forbearance is a pause in your payments. – essentially you are delaying mortgage payments which will eventually need to be paid.
What happens after your forbearance period? After your forbearance period your mortgage company may require you to pay all “paused” payments in one lump sum, pay the amount owed in equal monthly payments over a specific period of time (in addition to your regularly monthly mortgage payment) or they may allow you to modify your loan and add the payments to the end of your loan.
How can I determine the best option for me? Putting your mortgage payments on forbearance can be a helpful tool to prevent a foreclosure. However, it is an important decision with consequences. You should seek professional advice before making a decision about your options. Milby Law Offices, PA is here for you whether you need to file bankruptcy or not. We will be happy to discuss your options and help you make the best decision for you and your family. Together we will get through this.