Homes go to closing:


For November this year, we have seen hundreds of more homes being sold than we did in the same month for 2019.  So our market is still healthy and active.  If you are paying $1800 for rent for a two-bedroom apartment, you are paying too much and may want to consider purchasing a home!

We have all been dealing with COVID-19 for longer than we have cared to now, and many of us are feeling the effects of it financially. If you have found that your income has been adversely impacted by the pandemic, you may find reaching out to your home lender can provide options to helping you keep your home.

One option is forbearance.  A forbearance will take your monthly mortgage payment and put it on hold for a time period, say six months.  So if you pay $2000 a month, then you may be thinking you are saving $12k.  But not so.  At the end of the six-month forbearance period, you are required to pay the entire $12,000 in order to keep your loan current.  If you can’t pay that, you may find the bank will foreclose on you.

Another option is deferment.  In this scenario, your $12,000 gets put on the back of your loan, pushing out the date your loan would be considered paid in full.  This is a much better way to go, especially if your financial future seems uncertain.

5 Steps to Follow When Applying for Forbearance

5 Steps to Follow When Applying for Forbearance | MyKCM

If you’re currently feeling the stress of affording your mortgage payment, or if you know someone who is, there’s still time to get help. For homeowners experiencing financial hardship this year, the CARES Act provides mortgage payment deferral options, creating much-needed relief in these challenging times.

It’s important, however, to understand how forbearance works. It’s not automatic. You need to take action now and apply for the program before these options expire.

study by the Urban Institute determined:

Approximately 400,000 homeowners who became delinquent after the pandemic began have forgone forbearance and become delinquent. These borrowers may not know they are eligible for forbearance.”

Thankfully, there’s still time to apply for forbearance, even if you’re just learning about it now. Doing so may be the game-changer you need to stay in your home, just when you need it most. Mike Fratantoni, Senior Vice President and Chief Economist at the Mortgage Bankers Association (MBA), explained:

“The increase in new forbearance requests may be the result of additional outreach to homeowners who had previously not taken advantage of forbearance opportunities.”

If you need to apply for forbearance but aren’t sure how to begin the process, the Consumer Financial Protection Bureau (CFPB) published 5 steps to follow when requesting mortgage forbearance:

1. Find the contact information for your servicer

Look at your mortgage statement to find the phone number for your servicer (the company you send your mortgage payment to every month). The Consumer Financial Protection Bureau encourages you to use the number on your statement to avoid scams.

2. Call your servicer

Explain your situation so your servicer can determine your best course of action. Be sure to ask any questions you have about the process.

3. Ask if you’re eligible for protection under the CARES Act

The CARES Act protects homeowners with federally backed loans (FHA, VA, USDA, Fannie Mae, and Freddie Mac). In addition, some private servicers are also providing forbearance programs.

4. Ask what happens when your forbearance period ends

Depending on the plan available to you, there are different options you may be able to consider. Your servicer will help you get a better understanding of what’s available.

The CFPB also recommends asking questions like:

  • What happens to the payments I miss?
  • What are my repayment options?
  • When will repayment be due?
  • Are there any fees?

5. Ask your servicer to provide the agreement in writing

A written agreement allows you to see exactly what type of program you’re agreeing to. It also helps you make sure it matches what you discuss with your provider over the phone.

Bottom Line

Help is out there for homeowners in need, but it’s important to apply now while this benefit is still available. The Consumer Financial Protection Bureau says: don’t wait, forbearance is not automatic. It must be requested. Reach out to your mortgage provider today so you can get the assistance you need to protect the hard-earned investment you’ve made in your home.