After Forbearance – Now What?
Covid-19 has impacted homeowners across the country. With job losses and income reductions, many
have taken advantage of the ability to enter a forbearance program with their lenders. During the
forbearance program, the agreements state that no late fees will be assessed, and the balance of
missed payments will be deferred to the end of the loan.
As a result, many homeowners have been able to keep their homes during this time of economic
upheaval.
Some of these affected may now have stabilized incomes and are ready to exit forbearance. They
might be wondering if they will be penalized for this if they choose to refinance or buy a new
home. Fortunately, there is good news for these homeowners. Part of the program is that the lender
will not report these late payments to the credit bureaus so the borrower will not have that issue
to contend with when they are ready to find a new loan.
Lenders understand that this is a unique situation and that it is not representative of the way a
borrower will remit payment in the long run. Additionally, some potential homebuyers may need to
relocate to take advantage of new employment opportunities—requiring them to sell their homes and
buy new ones. The good news is that homeowners who exit their forbearance plans can apply for a
refinance or new loan after 3 consecutive, on-time mortgage payments.
Covid-19 has impacted our lives in many ways. Fortunately, the lending community has taken
unprecedented steps to ensure the long-term damage to individuals and housing is minimized as much
as possible.
What if you are not in a position to keep your home? Act now before September 30, 2021 and give us
a call 678.390.BLUE (2583). We are here to assist you with options such as cash offer, investor
purchase or traditional sale
to name a few.
