There's a LOT of confusing and conflicting information going around. But... Do not JUST stop making YOUR mortgage payment!! Government, Investors and Servicers are working together to create programs and guidelines to help borrowers affected by the COVID outbreak with forbearance programs.
The big BUT: There is a big difference in forbearance and forgiveness! If you have lost your job and don't have money to make your payment, call your loan servicing company to find out your options for forbearance. You still owe the money...it's not payment forgiveness. 👏 DO 👏 NOT 👏 SKIP 👏 YOUR 👏 MORTGAGE 👏 PAYMENT! 😳
It's due the 1st of the month, just like before. It's late on the 15th, just like every other month. Late fees will add up and it will be reported to the credit bureaus on the 31st day, like usual...and THIS WILL IMPACT YOUR ABILITY TO REFINANCE OR BORROW MONEY IN THE FUTURE IF YOU NEED IT.
If you don't pay it, two payments will be due May 1st and three payments will be due June 1st. If you don't have one payment now, will you have three in June? When you get to 6, they start the foreclosure process. At this point, you are in deep shit and typically selling your home at a discount becomes the most likely option.
Here are your options.
1. If you are employed or self-employed and your rate is over 4-5% you may be able to refinance and legally skip a payment. Why not lower your rate, extend your term and lower your payment in the process? Or get some cash out as a buffer? You've all got equity in those walls. If you need it, let's go get it.
2. If you have suffered a decline in income and need help, CALL YOUR LOAN SERVICER AND ASK FOR HELP! They will help where they can but it typically requires the use of a loan modification or forbearance agreement. If you don't have any income that may be hard to qualify for.
Be informed! Don't just stop paying. Investors & Servicers are not protected and they will not protect you without self-advocacy. Email me if you have questions firstname.lastname@example.org *yes, you can share this *mortgage forebearance mortgagepayment covid_19 pandemic loan mortgageloan loanmodification bestofsandiego